Should traders buy INTC ahead of Q1 2025 earnings?

**Traders should exercise caution and consider the following points before deciding whether to buy INTC ahead of its Q1 2025 earnings:** 1. **Expected Earnings and Revenue**: Intel's estimated EPS for Q1 2025 is -$0.14, indicating a potential loss for the quarter. The estimated revenue for the same period is $12.28 billion. This suggests that while the company is expected to generate significant revenue, the negative earnings per share could be a concern for traders. 2. **Recent Performance and Analyst Sentiments**: Intel's stock has experienced a decline of 41.78% over the past year. However, it has shown recent gains of 0.5% in the last trading session. The consensus among analysts is a "Hold" rating with an average price target of $27.88, which is higher than the current share price of $23.62. This suggests that analysts are generally optimistic about the company's future prospects, but the near-term outlook may not be strong. 3. **Strategic Shifts and Cost Reductions**: Intel is undergoing a strategic overhaul with a focus on artificial intelligence and manufacturing capabilities. The company has also announced a $10 billion cost-reduction plan, including a significant headcount reduction. These strategic moves could potentially improve the company's long-term profitability and efficiency. 4. **Market Conditions and Partnerships**: Intel has formed partnerships in the aerospace industry, which could lead to new revenue streams and enhance the company's competitiveness. Additionally, the company is being considered by other major players for chip manufacturing, which could lead to additional business opportunities. 5. **Dividend Suspension**: Intel has announced the suspension of its dividend in the fourth quarter of 2024 to prioritize liquidity for strategic investments. This could be seen as a negative signal in the short term, but it may be a necessary step for the company's long-term growth. In conclusion, while Intel's long-term prospects appear positive with its strategic shifts and partnerships, the potential negative earnings and the dividend suspension may deter some traders. It is recommended that traders carefully consider their investment horizon and risk tolerance before making a decision. If they are confident in Intel's long-term growth potential and can tolerate the potential short-term negative impacts, it may be a suitable time to consider buying the stock ahead of the Q1 2025 earnings report. However, traders should closely monitor the company's performance and any updates regarding its strategic plans and financial health.