Intel NASDAQ:INTC heads into second-quarter earnings with the bar unusually high after a 186% rally this year turned the chipmaker into one of the market's biggest turnaround bets.
Wall Street expects Intel to return to profitability with earnings of $0.22 per share, versus a $0.10 loss a year ago. Revenue is projected to rise 12% to $14.45 billion, marking its strongest quarterly growth in nearly six years.
Intel designs processors for PCs and data centers while trying to build a contract manufacturing business that can compete with TSMC. Optimism has grown around stronger server demand, AI-related spending and CEO Lip-Bu Tan's turnaround strategy.
Expectations have climbed sharply, with 31 upward EPS revisions and no cuts over the past three months. Investors will also watch foundry margins, manufacturing execution and updates on potential customers following Intel's reported Tesla NASDAQ:TSLA agreement and speculation around Apple NASDAQ:AAPL.