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Yahoo
17 minutes ago
- Yahoo
Intel's chip contracting plan in spotlight on earnings day
By Arsheeya Bajwa (Reuters) -Faced with slumping quarterly sales and a burgeoning loss, Intel shareholders will want to know new CEO Lip Bu-Tan's plans for the chipmaker's nascent contract manufacturing business. Intel is set to report its sixth consecutive net loss on Thursday, while revenue is expected to drop for a fifth straight quarter, according to estimates from LSEG data. The storied chipmaker, once synonymous with America's chipmaking heft, has lagged due to years of strategic missteps. Rival Nvidia has leaped ahead in the booming artificial intelligence chip industry, while rival AMD has been gaining share in Intel's mainstay personal computer and server semiconductor markets. CEO Tan has been focusing on a next-generation chipmaking process called 14A to win big external customers, shifting away from 18A, a technology that his predecessor Pat Gelsinger had spent billions of dollars to develop. Such a move could lead to a big writedown, an expense that would surely displease investors even as Intel has signaled that the new technology will help it be more competitive against Taiwan's TSMC, the world's biggest chipmaking factory. Longer-term commentary on the company's plans for the 14A technology "will hold more weight this earnings call than anything else", Stifel analysts wrote ahead of the earnings. Intel is expected to report a net loss of about $1.25 billion for the April-June quarter, while its sales are expected to drop more than 7% to $11.92 billion. Last year was Intel's first unprofitable year since 1986. Writedowns could amount to hundreds of millions, if not billions, of dollars, according to analysts, and might impact the timeline for the foundry to break even. Intel's finance boss David Zinsner said in May he expected the unit to break even in 2027 and that would require external customers to generate low- to mid-single-digit billions in revenue. Intel's foundry unit is expected to generate $4.49 billion in sales in the second quarter, though a majority of this would come from chips Intel produces for itself, analysts said. STREAMLINING Since taking over as CEO in March, Tan has focused on shedding non-core assets. In April, Intel agreed to sell a 51% stake in its Altera programmable chip business for $4.46 billion. The company has also considered divesting its network and edge businesses as well. Intel's stock has risen 16% so far this year, compared with a 13.23% rise in the broader chip index. Investors will watch if Tan sells more assets, further flattens out the management structure, or expands the global layoffs the company announced last year. Intel, as with other chipmakers, is facing customers who are dragging their feet on their spending, due to uncertainty from U.S. President Donald Trump's trade war. Revenue at Intel's personal computer unit is expected to dip some 2% to $7.25 billion in the second quarter after customers pulled forward orders to the first three months of the year due to the threat of tariffs. Analog chipmaker Texas Instrument flagged similar troubles on Tuesday, sending its shares down 11% after hours. Chip-equipment maker ASML and TSMC have also warned tariff-related uncertainty has muddied the outlook for them. Revenue in Intel's data center unit, however, is expected to jump about 20% to $3.66 billion, signaling improving demand for traditional server chips after several quarters of poor sales. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures rise after US strikes a trade deal with Japan
US stock futures stepped higher on Wednesday after the US struck a trade deal with Japan and Wall Street readied for Tesla (TSLA) and Alphabet (GOOGL, GOOG) earnings. Dow Jones Industrial Average (YM=F) rose roughly 0.3%, while S&P 500 futures (ES=F) moved up 0.2% on the heels of the benchmark ekeing out another record closing high. Contracts on the tech-heavy Nasdaq 100 (NQ=F) edged up 0.1%. Trump posted on Truth Social on Tuesday evening, 'We just completed a massive Deal with Japan, perhaps the largest Deal ever made." The president said that the agreement includes a 15% tariff on imported goods from Japan. Read more: The latest on Trump's tariffs Google-parent Alphabet and Tesla are set to kick off highly anticipated second-quarter results from the "Magnificent Seven" after the bell Wednesday. Tesla CEO Elon Musk's rocky relationship with Trump is looming large over the EV maker's earnings. With its stock down nearly 18% year-to-date, investors are watching for updates on the company's core auto business and its robotaxi rollout. With Alphabet, investors are looking for signs that AI investments are starting to pay off as the company pours billions into the technology. A federal judge's decision that could force the company to sell Google Chrome will also be in focus. Other earnings results set to land on Wednesday include Chipotle (CMG), which is expected to report its second straight quarter of declining sales, as well as AT&T (T), IBM (IBM), and Alaska Air (ALK). Memes on the move again The return of meme stock mania doesn't appear like it will end on Wednesday. Some of the most trended ticker pages on Yahoo Finance this morning include meme crowd favorites Kohl's (KSS), Rocket (RKT) and Krispy Kreme (DNUT). Rocket and Krispy Kreme as of this writing are each up double-digit percentages pre-market. "The phenomenon of meme stocks isn't going away. I feel like the genie's out of the bottle. And it's just become a way for a certain subset of everyday investors to trade, and that's completely fine," Ritholtz Wealth Management strategist Callie Cox told me on Yahoo Finance's Opening Bid (watch below). Makes sense! Texas Instruments stock plunges as guidance disappoints Given how hard the stock market has rallied, any company reporting guidance that is perceived as subpar will get punished. A good example of that will play out with Texas Instruments (TXN) in today's session. The stock is getting pounded premarket, down 12% after third quarter guidance on earnings per share that was 14 cents below consensus on the low end. TXN blamed weak demand in the auto market (heard the same in GM's (GM) outlook on Tuesday). Executives at the key chipmaker for producers of cars and factory equipment said they didn't know how much of the second quarter's jump in revenue was down to customers trying to get ahead of tariffs, per Reuters. Whatever the case, TXN's outlook is putting pressure on similar names in the space: Microchip (MCHP), Analog Devices (ADI), NXP Semiconductors (NXPI), and On Semi (ON). Japanese auto stocks surge as US announces lower-than-expected tariffs Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%. Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%. According to Japan's NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% 'Most Favored Nation' base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June. Trump hailed the deal as the 'largest Deal ever,' claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods. Trending tickers in after-hours trading Texas Instruments, Inc. (TXN) Texas Instruments, a leading chipmaker with the broadest product list in the field, saw its share value drop over 11.6% in after-hours trading. The stock has seen 46% gains in the year to date following a boom in purchases with each wave of tariff announcements. The rapid cooling-off occurred when the executive team announced they were unaware how much of the increase in revenue had been dependent on consumers attempting to circumvent the hike in prices from Trump's tariffs. Enphase Energy, Inc. (ENPH) Solar equipment provider Enphase Energy saw a drop of over 7.2% in the company's stock value in extended trading. With 5% of the market share in the solar equipment field Enphase acts as an early indicator for the impact that Trump's removal of tax credits will have upon the industry. Enphase are pointing towards a 20% drop in the residential market. Read more here. Analog Devices, Inc. (ADI) Shares in semiconductor maker Analog Devices saw a drop of over 4.1% after-hours, erasing gains from the month so far. The company specializes in chips that convert real world input into electrical signals, processing sound, light, temperature, pressure and motion. Investors have been eyeing ADI's earnings reports, still not due for another month. Memes on the move again The return of meme stock mania doesn't appear like it will end on Wednesday. Some of the most trended ticker pages on Yahoo Finance this morning include meme crowd favorites Kohl's (KSS), Rocket (RKT) and Krispy Kreme (DNUT). Rocket and Krispy Kreme as of this writing are each up double-digit percentages pre-market. "The phenomenon of meme stocks isn't going away. I feel like the genie's out of the bottle. And it's just become a way for a certain subset of everyday investors to trade, and that's completely fine," Ritholtz Wealth Management strategist Callie Cox told me on Yahoo Finance's Opening Bid (watch below). Makes sense! The return of meme stock mania doesn't appear like it will end on Wednesday. Some of the most trended ticker pages on Yahoo Finance this morning include meme crowd favorites Kohl's (KSS), Rocket (RKT) and Krispy Kreme (DNUT). Rocket and Krispy Kreme as of this writing are each up double-digit percentages pre-market. "The phenomenon of meme stocks isn't going away. I feel like the genie's out of the bottle. And it's just become a way for a certain subset of everyday investors to trade, and that's completely fine," Ritholtz Wealth Management strategist Callie Cox told me on Yahoo Finance's Opening Bid (watch below). Makes sense! Texas Instruments stock plunges as guidance disappoints Given how hard the stock market has rallied, any company reporting guidance that is perceived as subpar will get punished. A good example of that will play out with Texas Instruments (TXN) in today's session. The stock is getting pounded premarket, down 12% after third quarter guidance on earnings per share that was 14 cents below consensus on the low end. TXN blamed weak demand in the auto market (heard the same in GM's (GM) outlook on Tuesday). Executives at the key chipmaker for producers of cars and factory equipment said they didn't know how much of the second quarter's jump in revenue was down to customers trying to get ahead of tariffs, per Reuters. Whatever the case, TXN's outlook is putting pressure on similar names in the space: Microchip (MCHP), Analog Devices (ADI), NXP Semiconductors (NXPI), and On Semi (ON). Given how hard the stock market has rallied, any company reporting guidance that is perceived as subpar will get punished. A good example of that will play out with Texas Instruments (TXN) in today's session. The stock is getting pounded premarket, down 12% after third quarter guidance on earnings per share that was 14 cents below consensus on the low end. TXN blamed weak demand in the auto market (heard the same in GM's (GM) outlook on Tuesday). Executives at the key chipmaker for producers of cars and factory equipment said they didn't know how much of the second quarter's jump in revenue was down to customers trying to get ahead of tariffs, per Reuters. Whatever the case, TXN's outlook is putting pressure on similar names in the space: Microchip (MCHP), Analog Devices (ADI), NXP Semiconductors (NXPI), and On Semi (ON). Japanese auto stocks surge as US announces lower-than-expected tariffs Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%. Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%. According to Japan's NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% 'Most Favored Nation' base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June. Trump hailed the deal as the 'largest Deal ever,' claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods. Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%. Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%. According to Japan's NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% 'Most Favored Nation' base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June. Trump hailed the deal as the 'largest Deal ever,' claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods. Trending tickers in after-hours trading Texas Instruments, Inc. (TXN) Texas Instruments, a leading chipmaker with the broadest product list in the field, saw its share value drop over 11.6% in after-hours trading. The stock has seen 46% gains in the year to date following a boom in purchases with each wave of tariff announcements. The rapid cooling-off occurred when the executive team announced they were unaware how much of the increase in revenue had been dependent on consumers attempting to circumvent the hike in prices from Trump's tariffs. Enphase Energy, Inc. (ENPH) Solar equipment provider Enphase Energy saw a drop of over 7.2% in the company's stock value in extended trading. With 5% of the market share in the solar equipment field Enphase acts as an early indicator for the impact that Trump's removal of tax credits will have upon the industry. Enphase are pointing towards a 20% drop in the residential market. Read more here. Analog Devices, Inc. (ADI) Shares in semiconductor maker Analog Devices saw a drop of over 4.1% after-hours, erasing gains from the month so far. The company specializes in chips that convert real world input into electrical signals, processing sound, light, temperature, pressure and motion. Investors have been eyeing ADI's earnings reports, still not due for another month. Texas Instruments, Inc. (TXN) Texas Instruments, a leading chipmaker with the broadest product list in the field, saw its share value drop over 11.6% in after-hours trading. The stock has seen 46% gains in the year to date following a boom in purchases with each wave of tariff announcements. The rapid cooling-off occurred when the executive team announced they were unaware how much of the increase in revenue had been dependent on consumers attempting to circumvent the hike in prices from Trump's tariffs. Enphase Energy, Inc. (ENPH) Solar equipment provider Enphase Energy saw a drop of over 7.2% in the company's stock value in extended trading. With 5% of the market share in the solar equipment field Enphase acts as an early indicator for the impact that Trump's removal of tax credits will have upon the industry. Enphase are pointing towards a 20% drop in the residential market. Read more here. Analog Devices, Inc. (ADI) Shares in semiconductor maker Analog Devices saw a drop of over 4.1% after-hours, erasing gains from the month so far. The company specializes in chips that convert real world input into electrical signals, processing sound, light, temperature, pressure and motion. Investors have been eyeing ADI's earnings reports, still not due for another month.
Yahoo
17 minutes ago
- Yahoo
Trending tickers: Krispy Kreme, Texas Instruments, Toyota, Tencent and SAP
Krispy Kreme (DNUT) Doughnut chain Krispy Kreme (DNUT) appeared to be the latest addition to a new batch of meme stocks in the latest resurgence of the trend this week. Shares jumped nearly 27% on Tuesday and were up close to another 27% in pre-market trading on Wednesday morning, with it mentioned in threads on the subreddit wallstreetbets, which became popular in the meme stock craze of 2021. Department store Kohl's (KSS) was another entrant into this new class of meme stocks, also appearing in the subreddit threads on Tuesday. Shares in the beleaguered US retailer rocketed nearly 38% on Tuesday but hovered just below the flatline in pre-market trading on Wednesday morning. Read more: Stocks surge as Trump strikes trade deals with Japan, the Philippines and Indonesia This latest iteration of the meme stock craze began with online real estate service Opendoor Technologies (OPEN), with retail investors piling into the stock over the past week. Opendoor rocketed 188% last week after activist investor Eric Jackson said he could see the company hitting $82 (£60.56) per share, posting his bull thesis for an Opendoor turnaround on X on 14 July. However, shares turned negative on Tuesday, closing the session more than 10% in the red. Texas Instruments (TXN) Shares in Texas Instruments (TXN) were down 11.5% in pre-market trading on Wednesday, after the chipmaker's third quarter guidance appeared to disappoint against expectations. The company posted a 16% rise in second quarter revenue to $4.45bn, in results released on Tuesday, and earnings per share (EPS) of $1.41 was also 16% higher than the same period last year. For the third quarter, Texas Instruments said it expected revenue to be in the range of $4.45bn to $4.8bn and EPS of $1.36 and $1.60. According to Bloomberg, the average analyst estimate for revenue for $4.57bn, though some forecasts reached $4.8bn. Stocks: Create your watchlist and portfolio In prepared remarks for the company's earnings call, CEO Haviv Ilan said: "We continue to see two distinct dynamics at play. First, tariffs and geopolitics are disrupting and reshaping global supply chains. As we work closely with our customers, we are leveraging our global manufacturing capabilities to support their needs. We have flexibility and are prepared to navigate as things evolve." "Second, the semiconductor cycle is playing out," he added. "Cyclical recovery is continuing, while customer inventories remain at low levels. In times like this, it is important to have capacity and inventory, and we are well positioned." Toyota Motor Corp (7203.T) Shares in Tokyo-listed Toyota (7203.T) surged more than 14% on Wednesday, after it was announced that Japan had reached a trade deal with the US. The deal sees a 15% tariff imposed on Japan's exports to the US, which is lower than the 25% levy that US president Donald Trump had threatened in a letter earlier this month. It was later confirmed that this 15% tariff rate also applied to Japan's cars, which is below the 25% universal rate applied by the US on foreign-made cars. Read more: Stocks that are trending today Announcing the deal on Truth Social, Trump said: "We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits." "This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things," he said. Tencent ( Hong Kong-listed stocks also rose on Wednesday amid an easing of trade tensions between the US and China. The Hang Seng index (^HSI) rose 1.6% on Wednesday, with key risers including tech firms Tencent ( and Baidu ( which gained 4% and 6% respectively. US Treasury secretary Scott Bessent announced on Tuesday that that a third round of trade talks with China is now scheduled and will commence next week in Sweden. The goal is to delay an August deadline that has threatened to increase tariffs between the world's two largest economies. The confirmation of a meeting — following talks in Geneva and then London earlier this year — comes ahead of an Aug. 12 deadline when a pause on tariffs between China and the US is scheduled to expire. SAP ( In Europe, shares in SAP ( fell more than 3% on Wednesday, after the German software company reported mixed second quarter results. In results released late on Tuesday, SAP posted total revenue of €9.03bn (£7.82bn) for the second quarter, which was up 9% and operating profit of €2.57bn was up 32% year-on-year. Read more: Which Mag 7 stocks will be the top performers this earnings season? Ben Barringer, head of technology research at Quilter Cheviot, said: "All in all, SAP's results are a bit plain vanilla as the company continues to underscore its credentials as an established AI leader. Revenues beat expectations with the transition to cloud services continuing to drive things forward." "The only slight disappointment with these results is that there was no raise to the guidance, especially given the beating of expectations this quarter," he said. "The company has a history of conservatism, but given it is looking to appeal more and more to a US investor base, this approach may need to loosen over time. Barringer added: "Clearly there is still some tariff uncertainty overhanging, but SAP has shown it has the products and the engagement from customers to come through this and remain one of the leaders in AI integration for customers." Read more: UK's rising debt cost puts Reeves and tax rises in spotlight London IPO fundraising slumps in blow to UK Bank of England governor warns Labour against watering down financial rulesError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
