Intel INTC is scheduled to report first-quarter 2025 results on April 24 after market close. Let’s take a closer look at its fundamentals ahead of the earnings release.
After a dreadful performance last year, Intel has shown an impressive comeback and proved to be a resilient semiconductor stock amid the current market chaos, triggered by trade and tariff gyrations. Intel has shed about 2.4% so far this year, outperforming the industry’s average decline of 26.7%. The outperformance is likely to continue, given that Intel has a reasonable chance of beating estimates and has seen positive earnings estimates, which is a precursor to earnings beat (read: Intel on Best Streak in Decades: Should You Buy Its ETFs?).
This has put ETFs having a substantial allocation to the semiconductor maker — REX FANG & Innovation Equity Premium Income ETF FEPI, ProShares Nanotechnology ETF TINY, Xtrackers Semiconductor Select Equity ETF CHPS, Themes Generative Artificial Intelligence ETF WISE, and VanEck Vectors Semiconductor ETF SMH — in focus ahead of its Q1 earnings.
Earnings Whispers
Intel has an Earnings ESP of +400.00% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The world’s largest chipmaker saw positive earnings estimate revision of a penny over the past 30 days for the to-be-reported quarter. However, the Zacks Consensus Estimate for the first quarter indicates a substantial year-over-year earnings decline of 94.4% and a revenue decline of 3.2%. The earnings track record of the company is also unimpressive, as it delivered a four-quarter average negative earnings surprise of 366.6%.
Intel belongs to a top-ranked Zacks industry (in the top 23%).
What Should You Watch?
Investors will closely watch new CEO Lip-Bu Tan's turnaround strategy for the struggling American chipmaker, seeking early indications of a reversal after years of strategic missteps (see: all the Technology ETFs here).
The chipmaker is in the midst of a turnaround plan, focused on developing advanced AI processors and third-party foundry businesses, as it aims to recoup the technological edge it lost to Taiwan Semiconductor Manufacturing TSM, the world's largest contract chipmaker, and regain market share lost to rival AMD AMD.
For the current quarter, Intel projects revenues of $11.7-$12.7 billion. It expects adjusted earnings to break even.
ETFs in Focus
REX FANG & Innovation Equity Premium Income ETF (FEPI)
REX FANG & Innovation Equity Premium Income ETF is an actively managed ETF providing exposure to leading tech firms within the equally weighted FANG & Innovation Index. It aims for enhanced income by selling out-of-the-money call options, harnessing big tech’s volatility while capping some of the potential stock gains. FEPI also uses the covered call approach to counterbalance potential market declines, seeking to offer mitigation from price declines on these big tech stocks. REX FANG & Innovation Equity Premium Income ETF holds 32 stocks in its basket, with Intel making up for 6.4% share. It trades in an average daily volume of 167,000 shares and charges 65 bps in annual fees. FEPI has AUM of $399 million.
ProShares Nanotechnology ETF (TINY)
ProShares Nanotechnology ETF invests in companies that help businesses use nanoscale technology to transform lives and revolutionize industries. It follows the Solactive Nanotechnology Index and holds 30 securities in its basket, with Intel occupying the fourth position at 5.3% share. ProShares Nanotechnology ETF has accumulated $4.4 million in its asset base and trades in an average daily volume of 1,000 shares. It charges 58 bps in fees annually from investors.
Xtrackers Semiconductor Select Equity ETF (CHPS)
Xtrackers Semiconductor Select Equity ETF seeks to track the Solactive Semiconductor ESG Screened Index. It holds 53 stocks, with INTC being the second firm, accounting for a 5.1% share. Xtrackers Semiconductor Select Equity ETF charges 15 bps in annual fees and has AUM of $5.7 million. It trades in an average daily volume of 1,000 shares.
Themes Generative Artificial Intelligence ETF seeks to track the Solactive Generative Artificial Intelligence Index, which identifies companies that derive their revenues from AI, Data Analytics & Big Data, Natural Language Processing, or Artificial Intelligence-Driven Services. It holds 41 stocks in its basket, with Intel occupying the sixth position at 4.7%. Themes Generative Artificial Intelligence ETF has amassed $22.2 million in its asset base and charges 35 bps in annual fees. It trades in an average daily volume of 11,000 shares.
VanEck Vectors Semiconductor ETF (SMH)
VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with Intel occupying the ninth position at 4.1%. VanEck Vectors Semiconductor ETF has managed assets worth $17.7 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 12 million shares and has a Zacks ETF Rank #1 with a High risk outlook (read: 5 Beaten-Down ETFs to Play on Hints of Trade De-escalation).
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