Intel heads into its April 23 earnings with rising investor expectations , but the key question remains whether AI-driven CPU demand can offset ongoing margin weakness . Revenue Stable, But Margins Under Pressure Intel is expected to deliver Q1 revenue around US$12.4 billion , slightly above the midpoint of its guidance range. However, the real concern lies in profitability: Gross margin guided at 34.5% , down from 39.2% a year ago EPS near breakeven (~US$0.00) vs US$0.13 last year This highlights continued pressure from costs, utilisation, and product mix , despite improving demand signals. AI CPUs: A Key Growth Driver Intel’s near-term bullish case centers on AI-related CPU demand , particularly its Xeon processors. A key development is its partnership with Alphabet , which reinforces: Intel’s role in AI data centre infrastructure Growing demand for AI inference and general-purpose computing Investors will watch c...
Market Overview
- Singapore stocks opened lower on Wednesday, mirroring US market declines as concerns over chip trade restrictions and weak consumer confidence pressured tech stocks.
- Straits Times Index (STI) fell 0.23% to 3,906.84, with 122 gainers vs. 90 decliners.
- US markets struggled, with the Nasdaq falling 1.35% and the S&P 500 down 0.47%, as potential semiconductor export restrictions to China weighed on sentiment.
Singapore Market Performance & Sector Highlights
- Singapore equities gained 6% in the past three months, outpacing ASEAN markets, driven by:
- Financial sector (+13%), supported by rate alignment with the US.
- Telecom & Utilities sector growth, fueled by AI-driven data center expansion.
- Government bond yields remain stable, benefiting from steady inflation and interest rate trends.
Stocks to Watch
OCBC Bank (O39.SG):
- Q4 net profit rose 4% YOY to S$1.69 billion, but missed analyst expectations of S$1.78 billion.
- Announced final dividend of S$0.41 per share + special dividend of S$0.16 per share, as part of a S$2.5 billion capital return strategy.
- Shares fell 0.5% to S$17.60 on Tuesday.
City Developments (C09.SG):
- Net profit plunged 54.7% to S$113.5 million in 2H2024, with revenue dropping 23.6%.
- Full-year profit fell 36.6% to S$201.3 million.
- Requested a trading halt on Wednesday.
SingPost (S08.SG):
- EGM set for March 13 to approve the A$1.02 billion divestment of its Australian business.
- Expected to gain S$289.5 million from the sale.
Food Empire (F03.SG):
- Net profit fell 3.2% to US$28.9 million, despite 10.4% revenue growth to US$251.1 million.
- Proposed dividend of S$0.08 per share (including special dividend of S$0.02).
- Shares declined 1% to S$0.975 before the announcement.
Singapore Land Group (U06.SG):
- Net profit surged 76% to S$180.5 million in 2H2024, with revenue up 9% to S$390.5 million.
- Earnings per share (excluding property fair-value gains) rose to S$0.093.
Summary:
- Singapore stocks open lower, following global tech weakness.
- Financial and telecom sectors drive Singapore’s 6% market growth in recent months.
- OCBC posts profit growth but misses forecasts, announces capital return plan.
- City Developments faces profit decline, while SingPost prepares major asset divestment.
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