Intel Corporation is gearing up to unveil its second-quarter 2024 results on Aug 1, post-market close. In this upcoming financial report, the tech giant is poised to showcase a surge in revenues from its Client Computing Group (CCG) division, courtesy of its relentless focus on innovation. The company’s initiatives toward enhancing semiconductor manufacturing efficiency and fortifying its supply chain are anticipated to be pivotal drivers of this growth.

Driving Forces Behind Intel’s Growth

CCG emerges as Intel’s primary revenue generator, encompassing computer CPUs, server boards, form factor systems, and graphic products. Boasting a plethora of achievements, Intel recently exceeded the milestone of 500 AI models optimized for its core Ultra processors. These models cater to diverse AI applications, ranging from large language models to object detection, greatly reinforcing Intel’s footing in the burgeoning realm of AI PCs.

Paving the way to ship over 40 million AI PC processors in 2024, Intel is expanding its AI presence to edge devices and PCs utilizing its Core Ultra processors, which support over 100 software vendors. Furthermore, the introduction of the Lunar Lake architecture at Computex 2024 promises to supercharge Neural Processing Unit capabilities, ushering in marked enhancements in AI PC performance. Equipped with advanced graphics and AI processing prowess, Lunar Lake processors are projected to enhance device security, battery life, and power efficiency, consequently fueling revenue growth within this segment.

Forecasted Outcomes

Estimates suggest that revenues from the CCG sector are forecasted to reach $7.51 billion, signaling an uptick from $6.78 billion in the corresponding quarter of the prior year. Our own projections align closely, foreseeing revenues of $7.43 billion, indicative of a robust 9.7% year-over-year expansion.

As for the overall financial performance in the second quarter, market consensus predicts total revenues amounting to $12.92 billion, slightly below the $12.95 billion reported in the same period last year. Adjusted earnings per share are expected to settle at 10 cents, down from the 13 cents recorded in the preceding year’s Q2.

Earnings Speculations

Despite a positive Earnings ESP of +10.79%, which signifies the variance between the Most Accurate Estimate and the Zacks Consensus Estimate, our analytical model refrains from definitively prophesying an earnings outperformance for Intel in the second quarter. Typically, a combination of a favorable Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings beat. Regrettably, this criterion remains unmet in this particular scenario.

Zacks Rank: Intel currently holds a Zacks Rank #4 (Sell).

Other Considerable Stocks

If you’re eyeing potential investment opportunities, here are a few companies poised for a possible earnings surprise this season:

Fortinet (NASDAQ: FTNT) is gearing up to release its quarterly results on Aug 6. With an Earnings ESP of +3.41% and a Zacks Rank of 3, Fortinet presents a compelling prospect.

BWX Technologies (NYSE: BWXT) carries an Earnings ESP of +0.88% alongside a Zacks Rank of 3, preparing to disclose its quarterly figures on Aug 5.

Watts Water Technologies (NYSE: WTS) bears an Earnings ESP of +1.17% and a Zacks Rank of 3, set to report its quarterly results on Aug 7.