In its report, HTSC stated that Intel's revenue for the previous quarter was $12.833 billion, a 1% YoY decrease and slightly less than the market expectation of $12.949 billion. Non-GAAP earnings per share were $0.02, lower than the market expectation of $0.102. Non-GAAP gross margin decreased by 1.1 percentage points YoY to 38.7%. The report shows that the company guided its Q3 revenue to be between $12.5 billion and $13.5 billion, with the median slightly less than the market expectation of $13.124 billion. The company announced a $10 billion cost-cutting plan with expectations to cut more than 15% of its workforce and suspend dividends starting in the fourth quarter.

The bank adjusted its revenue forecast for the company from 2024 to 2026 to $53.2 billion, $57.6 billion, and $60.4 billion, respectively. The previous forecast was $56.1 billion, $61.5 billion, and $68.2 billion, respectively. The bank used a comparable company p/s range of 3.72 to 7.17 times for 2025 as a reference, considering the company's performance and process deployment falling below expectations, and increasing uncertainty in catching up with competitors. As a result, the company valuation was lowered from about 3.5 times p/s for 2025 to about 1.9 times, and the target price was lowered from $50 to $26. The rating remains "buy".