The 2025 Q1 earnings season remains in full swing, with a wide variety of companies on deck to report quarterly results this week.

Among the bunch are several chip stocks, a list that includes Intel INTC and Texas Instruments TXN. Both stocks reside in the red for 2025 amid the broader pressure in semiconductors overall, though Intel shares have displayed a higher level of defense.

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Let’s take a closer look at what to expect.

TXN Expectations Remain Stable

EPS and sales expectations for TXN’s release have largely remained stable, with EPS forecasted to decline 12% alongside a 6.7% move higher in sales. The profitability crunch here is quite notable, continuing an established trend, as shown below.

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The valuation picture is a bit stretched, with the current 25.6X forward 12-month earnings multiple reflecting a 34% premium relative to the S&P 500 and above the 24.6X five-year median.

The current PEG ratio works out to 2.2X, with the stock carrying a Value Style Score of ‘D’.

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The company’s cash-generating abilities have also allowed it to consistently pay its shareholders higher dividend payouts, with TXN sporting a 9% five-year annualized dividend growth rate. Its cash flows will be a key item to watch in the report, which saw a decline throughout its latest period.

Below is a chart illustrating the company’s dividends paid on a quarterly basis.

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Can Intel Bounce Back?

Intel shares have lagged big time over the last several years amid the AI frenzy, with the stock down more than 30% over the last two years. Intel’s 2024 results regularly brought downward pressure, as highlighted below.

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EPS and sales expectations have moved lower for the quarter to be reported over recent months, with INTC expected to see a 94% pullback in EPS on 3% lower sales. As shown in the quarterly chart below, the company’s top line has struggled to show meaningful improvement over recent periods.

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The stock is in desperate need of a new narrative overall, with a recent CEO change perhaps sparking some meaningful changes. Guidance and commentary will be key for the post-earnings reaction, though it’s beneficial to note that shares have already suffered a great deal.

Bottom Line

We continue to wade through the 2025 Q1 earnings cycle, with this week’s reporting docket notably busy. Several semiconductor stocks, namely Intel INTC and Texas Instruments TXN, are on the reporting docket, with guidance to be the critical factor dictating the post-earnings moves.

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This article originally published on Zacks Investment Research (zacks.com).

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