Intel Q2 loss widens, revenue jumps

What happened: Intel (INTC) reported a wider Q2 net loss of $11.03 billion, or $2.16 per share, driven by a $5.3 billion impairment charge related to its Mobileye autonomous vehicle unit. However, revenue surged 25% YoY, the strongest growth in over 15 years, to $18.5 billion. IBM (IBM) shares plummeted 24% on July 14 after the company unexpectedly released preliminary Q2 earnings, marking its worst single-day decline in decades.

Market impact: The tech sector was rattled, with Intel's mixed results sparking concerns about its turnaround efforts, while IBM's disappointing earnings raised questions about its strategic shift towards cloud and AI. Intel's revenue growth boosted the semiconductor sector, but IBM's stock price decline dragged down the broader tech market.

What to watch next: Intel's Q3 earnings on October 27 will provide further insight into its turnaround progress. IBM's full Q2 earnings on August 2 will offer more details on its strategic shift and potential recovery. Additionally, investors should monitor the broader tech sector's performance, particularly in semiconductors and enterprise software, as these companies often move in tandem.