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Intel INTC Q2 Earnings report Lip-Bu Tan
Intel CEO Lip-Bu Tan (Andrej Sokolow/Getty Images)

Intel tumbles as pleas for time to deliver its turnaround fall on deaf ears

Traders had little patience for Intel after the stock’s hot start to 2026 saw it gain nearly 50% coming into the print.

Luke Kawa, Matt Phillips

Intel is tumbling after asking for patience to execute a turnaround plan that traders had already aggressively been pricing in.

The US chipmaker delivered stronger-than-expected Q4 results, but dropped after its Q1 guidance came in light of Wall Street estimates. Shares extended declines during Intel’s conference call to trade down 13% as of 7:30 a.m. ET.

“We are on a multiyear journey,” said Intel CEO Lip-Bu Tan, which will “take time and resolve.”

That time and resolve is something that long-term investors might have the stomach for, though the same can’t be said of the hot money that’s recently poured into Intel, some of which seems to be on its way out. Had January ended yesterday, Intel would have enjoyed its second-best month of all time (behind October 1987).

“For a stock up 47% in three weeks (mostly on vibes and tweets) the print had to be perfect; it was not,” Bernstein analyst Stacy Rasgon wrote. “And while the things driving investors crazy (server refresh hopes, 18A ramp, potential for 14A customers etc) are still there in theory, it appears Intel’s hips do, in fact, lie. Yes the server cycle seems real, but the company appears to have woefully misjudged it with their capacity footprint caught massively off-guard.”

Intel wasn’t able to offer concrete progress on any new customer wins. For the chipmaker’s 14A advanced manufacturing process, the CEO said, “We believe customers will begin to make firm supplier decisions starting in the second half of this year and extending into the first half of 2027.”

Management attributed the soft Q1 outlook to supply constraints, which it expects will be the biggest headache in the current quarter and will turn a corner thereafter.

During the call, Bernstein’s Rasgon questioned whether this issue wasn’t self-inflicted, particularly when it comes to data center customers.

“You guys have your own factories — why are you in the inventory situation that you’re in?” he asked on the conference call. “You have $11.6 billion of inventory, and yet it’s not in the right place at the right time to ship. How does that happen?

Intel upped its outlook for 2026 capex to “flat to down slightly” from “down,” as the chipmaker aims to boost capacity to be able to meet robust demand.

Even with the post-earnings tumble, the stock remains an exceptional performer over the past month and year.

But while the recent price action suggested Intel’s turnaround was a fait accompli, the story from management and Wall Street is that it’s far from a foregone conclusion.

“Foundry economics/scale will likely remain challenged at least through the end of the decade,” wrote JPMorgan analyst Harlan Sur. “In sum, we still view Intel as being at risk of further share loss in its product businesses (particularly in server CPU given AMD’s strong product portfolio/roadmap and Intel’s supply constraints), with a largely unproven external Foundry business that (so far) has seen very limited traction with customers.”

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What to look for in Oracle’s Q3 earnings

On Tuesday, Oracle will announce its third-quarter earnings, and all eyes are on the company’s massive AI data center build-out. Last month, the company told investors that it plans to raise $45 billion to $50 billion to fund its ambitious capex plans.

With so much new spending, the company is reportedly looking to make steep job cuts —  thousands of positions across the company — and may be freezing hiring in its cloud division.

Shares of Oracle are down by more than 20% since the start of the year. The stock is down about 56% from its 52-week high of $345.72.

The company’s big bet on AI is causing some concerns among investors, and Oracle has recently seen a wave of lowered price targets from analysts:

  • Jefferies: to $320 from $400.

  • Scotiabank: to $215 from $220.

  • Deutsche Bank: to $300 from $375.

  • Baird: to $200 from $300.

On Friday, shares dropped sharply on reports that OpenAI had pulled out of a planned expansion of the Stargate data center in Abilene, Texas. But OpenAI has since clarified that the decision to back out of plans for the expansion was just the result of shifting capacity to other data center sites under construction.

The company will announce its earnings after market close on Tuesday.

FactSet’s survey of analysts shows they expect earnings per share of $1.70 and revenue of $16.9 billion for Oracle’s third quarter. Cloud revenue is expected to be $8.76 billion, and all eyes will be on Oracle’s capex, which is expected to be $14 billion.

Joby, Archer, and Beta climb following their inclusion in the Trump administration’s air taxi pilot program

Shares of air taxi makers Joby Aviation, Archer Aviation, and Beta Technologies are climbing in Monday afternoon trading following the Department of Transportation’s announcement of their inclusion in the eVTOL Integration Pilot Program.

Archer and Joby, which announced their plans to participate in the program back in September, each climbed more than 4% on Monday, while Beta surged more than 12%. Boeing’s air taxi subsidiary, Wisk, was also named in the DOT’s announcement.

The DOT and FAA selected eight projects spanning 26 states to speed up the development of “advanced air mobility.” Operations will begin this summer. According to an Archer press release, the program could mark “a major step toward bringing electric air taxis to market in the United States.”

“These partnerships will help us better understand how to safely and efficiently integrate these aircraft into the National Airspace System,” FAA Deputy Administrator Chris Rocheleau said. “The program will provide valuable operational experience that will inform the standards needed to enable safe Advanced Air Mobility operations.”

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As the S&P 500 announces new members, index investors could get exposure to SpaceX

Here’s something kind of strange.

If all goes as planned, investors in the most basic kind of investment available — your plain-vanilla, low-cost S&P 500 Index fund, such as SPDR S&P 500 ETF — will soon get a form of pre-IPO exposure to Elon Musk’s SpaceX, one of most sought-after stakes in the private markets.

That’s because one of the new companies that will be added to the S&P 500 (via additions announced on Friday) is EchoStar, the indebted satellite services company that owns Dish Network.

EchoStar — which along with Vertiv Holdings, Lumentum, and Coherent will go into the index on March 23 — is also set to become a not insignificant owner of class A common stock in SpaceX.

SpaceX is said to be targeting an over $1 trillion valuation for an IPO this June. EchoStar has struck deals for shares that would give it a roughly 2.8% stake in SpaceX, analysts say.

SpaceX sold that stake to pay EchoStar for part of the roughly $20 billion cost of prized spectrum assets. The company first struck a spectrum deal with SpaceX in September, before it expanded in November. Investors have since seemed to view the company as a way to gain backdoor exposure to Musk’s hot, privately held space company.

That excitement continues, but it should be noted that even though EchoStar struck a deal for SpaceX shares, company officials say that stock is not yet in its coffers and it won’t be until its SpaceX deals close.

Speaking to analysts after the company’s earnings call on March 2, EchoStar CEO Hamid Akhavan said:

“Until the closing, we dont have actually the — that SpaceXs equity. So that is not something that we can make any plans on till we actually get the equity. We have a right to it, but we dont have the — we actually dont have that equity yet. So well see how that plays out.”

No closing date was offered when the initial deal with SpaceX was announced in September, with EchoStar releases saying only the “closing of the proposed transaction will occur after all required regulatory approvals are received and other closing conditions are satisfied.”

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