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Intel Stock Rises on Revenue Beat as CEO Search Takes Center Stage

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Intel shares climbed 1.7% in premarket trading on Friday following better-than-expected quarterly revenue, despite the company’s ongoing struggles in the AI-driven chip market. Investors remain focused on Intel’s search for a new CEO after the abrupt departure of Pat Gelsinger, whose four-year turnaround plan was cut short amid persistent challenges.

While Intel’s revenue exceeded modest expectations, its forecast for the current quarter fell below estimates. Analysts at Bernstein noted that investors have become “numb” to Intel’s struggles, suggesting that leadership changes are now the primary concern rather than financial performance.

The company has appointed CFO David Zinsner and senior executive Michelle Johnston Holthaus as interim co-CEOs while the board seeks a long-term replacement. Meanwhile, Intel continues to lose market share to competitors like Advanced Micro Devices (AMD), particularly in the AI sector, where it missed key investment opportunities, including OpenAI.

With AI chip demand soaring, companies are prioritizing specialized processors over traditional server chips, further limiting Intel’s growth. Analysts at Jefferies remain skeptical about Intel’s ability to turn things around, citing its struggling foundry business and lack of major customers.

Despite these challenges, Intel’s stock has fallen 60% over the past year, while AI chip leader Nvidia has surged 171%. As the CEO search progresses, investors will be looking for a strategic vision that can help Intel regain its competitive edge.

Mobileye Predicts Lower 2025 Revenue Amid China Market Challenges

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Mobileye has forecast lower-than-expected revenue for 2025, citing continued weakness in the Chinese market due to increasing competition from local self-driving technology providers. The company expects revenue between $1.69 billion and $1.81 billion, falling short of the $1.94 billion analyst consensus from LSEG data.

Chinese manufacturers have been developing their own advanced driver-assistance systems (ADAS) at lower costs, limiting Mobileye’s shipments to the region. In December, the company noted that its major automotive customers were losing market share in China as local automakers ramped up production of more affordable electric vehicles (EVs).

While shipment volumes of Mobileye’s EyeQ chips in China have improved compared to 2024, they remain sluggish, executives stated in a post-earnings call on Thursday. The recent reintroduction of Chinese government EV subsidies could stimulate demand, but the impact remains uncertain.

Despite these challenges, Mobileye reported fourth-quarter revenue of $490 million, surpassing the $477.8 million estimate but marking a 23% decline from the previous year. The drop was attributed to lower demand for its EyeQ chips as automakers continue to work through excess inventory.

Looking ahead, Mobileye remains optimistic about 2025, stating that its ongoing tests with potential customers for its assisted driving technology “will bear fruit” next year. The company also dismissed concerns that legacy automakers will fully develop their own in-house driver assistance systems, as many are reassessing their EV strategies amid slowing demand.

On an adjusted basis, Mobileye posted earnings of 13 cents per share in the fourth quarter, exceeding estimates of 11 cents. However, gross profit declined by 30% during the same period.

 

Seagate Projects Third-Quarter Revenue Below Expectations Amid Slow PC Market Recovery

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Seagate Technology has forecasted a disappointing third-quarter revenue, projecting figures below analyst expectations due to weak sales of its storage devices for personal computers, as the PC market remains sluggish.

Key Points:

  • Weakened PC Market: Despite the integration of on-device AI features and an expected Windows 11 refresh cycle, Seagate’s outlook reflects the ongoing struggles in the PC market. Global PC shipments in 2024 saw only a 1% rise, with the total number of units falling below 250 million for the second consecutive year.
  • Revenue Forecast: Seagate anticipates third-quarter revenue to be around $2.10 billion, plus or minus $150 million. This forecast is below analysts’ average estimate of $2.19 billion, based on data from LSEG.
  • Profit Estimates: Seagate expects an adjusted profit of $1.70 per share for the third quarter, which is slightly above analysts’ estimate of $1.69.
  • Cloud and AI Prospects: While the forecast is gloomy for the near term, analysts suggest that the growing investment in infrastructure for generative AI development by cloud providers could provide a boost to Seagate’s sales in 2025. Seagate’s disk drives are crucial for storing vast amounts of data, making the company a key player in the evolving AI-driven tech landscape.
  • Recent Performance: For the second quarter ending Dec. 27, Seagate reported revenue of $2.33 billion, in line with analysts’ expectations of $2.32 billion.