Intel Surprises Wall Street With Earnings Beat, But Investors Are Split Over Networking Spin-Off and Job Cuts
Stock rallies despite internal shake-ups as bulls and bears clash on what’s next for $INTC
Intel Corporation ($INTC), listed on the NASDAQ and a prominent player in the semiconductors sector, is making waves this week as investors digest a series of developments following the company’s latest earnings report. Although Intel exceeded Wall Street’s revenue expectations, the company’s stock is under intense scrutiny due to a mix of positive and negative catalysts that have divided market sentiment.
The headlines began to stir after Intel posted better-than-expected revenue for the second quarter of 2025, surpassing estimates by delivering strong data center and PC chip sales. This performance was enough to fuel a short-term rally, pushing the stock up nearly 4% in early Thursday trading. But while the earnings beat initially excited bulls, broader discussions quickly turned toward the company’s longer-term strategic moves — particularly a possible spin-off of its networking unit and confirmed reports of significant workforce reductions.
Intel’s networking business, which includes advanced communication chips and AI-driven infrastructure products, has struggled to gain profitability in the face of stiff competition. The idea of spinning off this division is being seen as both a potential catalyst and a red flag. On one side, bulls argue the move could allow Intel to sharpen its focus on its core semiconductor operations and unlock shareholder value. On the other, skeptics worry that the spin-off could signal internal weaknesses and further destabilize a company already undergoing structural changes.
Adding to the uncertainty, Intel confirmed job cuts affecting hundreds of employees across various global sites. While company spokespeople described these cuts as part of a broader cost-optimization strategy, the news has drawn criticism from labor groups and sparked concerns about employee morale and internal stability.
Social media platforms and financial forums have lit up with debate. On Reddit and X (formerly Twitter), discussions highlight a clear divide: one camp views $INTC as a strong buy due to its valuation — currently trading at a forward P/E significantly lower than sector peers like NVIDIA ($NVDA) and Advanced Micro Devices ($AMD), both also on the NASDAQ. The other sees a company losing its grip on innovation and relevance, potentially over-reliant on restructuring narratives to maintain investor interest.
Some bulls point to a possible wave of institutional rotation into undervalued large-cap tech as another factor favoring Intel. With high-flying AI names appearing overbought, funds may begin shifting into more reasonably priced semiconductor stocks — and $INTC could be the beneficiary.
Analysts are beginning to weigh in. While Piper Sandler reiterated a neutral rating, other firms like Morgan Stanley expressed cautious optimism, stating that the real test will come in Q3 if Intel can show momentum in its AI accelerator initiatives.
As earnings season continues and tech remains at the forefront of market narratives, all eyes will be on whether Intel’s latest moves represent a turning point or a warning sign. Either way, $INTC is back in the spotlight, and retail and institutional investors alike are paying attention.