Intel Q2 loss widens, revenue jumps

What happened: On July 23, Intel (INTC) reported Q2 results, posting a 25% year-over-year revenue increase to $16.1 billion, its fastest growth in over 15 years. Despite beating expectations, the stock fell 4.6% on July 24, closing at $92. IBM (IBM) shares dropped 24% on July 14 after unexpected Q2 earnings, marking its worst day on the market in decades.

Market impact: Intel's mixed performance led to a bearish sentiment, with some analysts suggesting shorting INTC puts. IBM's poor performance impacted tech sector sentiment, with investors questioning earnings guidance. Intel's strong revenue growth, however, boosted confidence in the semiconductor industry's recovery.

What to watch next: Intel's Q3 earnings on October 27 will provide further insight into its turnaround. IBM's Q2 earnings on August 17 will be closely watched for any signs of recovery. Additionally, Intel's progress on its foundry ambitions and 18A yield improvements, expected to be detailed in upcoming investor conferences, will be crucial for validating its turnaround thesis.