VRSN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record new registrations of 12.7 million were driven by a synergistic convergence of AI-enabled content creation tools and sharpened registrar marketing programs. Management attributes the 21% year-over-year unit growth to AI making domain discovery and website maintenance faster, increasing the value of digital credibility. The company successfully delegated .web into the global DNS root zone, resolving long-standing disputes and gaining a TLD with full wholesale pricing flexibility. Operational excellence remains a core competitive advantage, with the .com and .net systems reaching 29 years of 100% uninterrupted availability. Strategic marketing shifts have moved from focusing on Average Revenue Per User (ARPU) back to customer acquisition, aligning with evolving registrar business models. The U.S. and EMEA regions showed the strongest growth, which management views favorably due to the historically higher quality and renewal rates in these markets. Domain name base growth guidance for 2026 was increased and narrowed to 5.2% to 6.0% based on first-half momentum and AI tailwinds. The .web launch sequence includes a 90-day security test and a 30-day trademark sunrise period, with general availability expected late 2026 or early 2027. Management plans to offer a Limited Registration Period for .web, giving existing .com holders the first opportunity to secure matching domains. New security-focused products leveraging public key infrastructure (PKI) are in test mode and expected to address AI-related 'Zero Trust' security challenges. Revenue from the November 2026 .com price increase is expected to flow through ratably, with approximately 50% recognized in 2027 and the remainder in 2028. The Board authorized an additional $884 million for share repurchases, bringing the total available capacity to $1.5 billion with no expiration date. Rising costs for server memory chips and data center components are impacting CapEx, though management is pulling forward spend to mitigate future price hikes. Management clarified that while the upcoming November price increase may cause some registration pull-forward, it is not considered a material factor in current strength. The company transitioned to a quarterly cash dividend policy, with the first payment of $0.81 per share scheduled for August 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes AI is structurally increasing demand by obscuring technical complexity and making it easier for creators to establish digital identities. The stability of the DNS governance under ICANN provides a secure global identifier that alternate name spaces cannot currently match. Unlike .com, .web is not governed by a Department of Commerce cooperative agreement, granting VeriSign complete wholesale pricing flexibility with 6-month notice. The company will have the ability to sell premium names in .web, a feature not available in the regulated .com or .net registries. First-time renewal rates have remained stable in the mid-40% range despite the surge in volume, suggesting the new registrations are of high quality. Management noted that once a name renews once, it enters the 'previously renewed' base which carries a significantly higher renewal rate in the mid-80% range.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. VeriSign stock has delivered a 26.8% gain over the past three years, yet current valuation checks suggest the shares trade at a premium, with both the Discounted Cash Flow (DCF) intrinsic value estimate and market multiples pointing to an overvalued profile. Over the last three years, VeriSign has returned 26.8%, which sets a constructive backdrop for long term holders assessing whether the current price still offers an appealing entry point. The recent delegation of the .web domain and expectations around future domain related cash flows can support optimism, while any disappointment in domain base trends or renewal rates may weigh on how much investors are willing to pay for that growth. With a valuation score of 1 out of 6 checks, VeriSign currently screens as leaning expensive rather than a clear bargain on the broader tests. The issue now is whether that premium valuation is supported by assumptions about VeriSign's future cash generation, or if the current price leaves limited room for error. VeriSign delivered -7.6% returns over the last year. See how this stacks up to the rest of the IT industry. The Discounted Cash Flow (DCF) approach looks at the cash VeriSign is expected to generate in the future and discounts it back to today. VeriSign currently produces last twelve month free cash flow of about $1.0b, and the model applies a growing cash flow profile using a 2 Stage Free Cash Flow to Equity framework to reflect a period of higher growth that then moderates over time. On these assumptions, the DCF model arrives at an estimated intrinsic value of about $219 per share, which implies the stock trades roughly 19.4% above this estimate. Because VeriSign has recently delegated the .web domain and raised full year 2026 guidance, the market may be assigning extra value to future domain related cash flows that the model does not fully capture. Overall, the Discounted Cash Flow (DCF) workup suggests VeriSign stock currently screens as overvalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests VeriSign may be overvalued by 19.4%. Discover 38 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for VeriSign. The P/E ratio suits VeriSign because its business is built around recurring earnings that are relatively straightforward for investors to track. VeriSign currently trades on a P/E of about 28.3x, compared with an IT industry average of around 17.0x and a peer average near 53.3x. As a result, the stock sits between the broader sector and higher rated peers. The company specific model suggests a fair P/E ratio of roughly 23.6x, based on factors such as VeriSign’s profitability profile, scale and risk. This places the current 28.3x multiple above the level implied by these fundamentals, indicating investors are paying a premium versus what this framework identifies as a more grounded earnings-based valuation. Overall, the P/E workup indicates VeriSign stock appears overvalued on earnings compared with its tailored fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for VeriSign pick up where the valuation checks leave off, by spelling out the specific assumptions about VeriSign's future growth, margins and earnings that would need to hold for the stock to be worth materially more or less than today's price. They sit on Simply Wall St's Community page as a way to link those assumptions back to the current share price. Instead of stopping at a single ratio or DCF output, these Narratives lay out the future that number rests on so you can watch how the real business performance lines up with that story over time. Community views on VeriSign sit far apart, with one side focusing on steady cash returns and the other on concentrated risk around its core franchise. Bull case: 16% undervalued Read the full Bull Case to see why VeriSign could be undervalued Bear case: 59% overvalued Read the full Bear Case to see why VeriSign could be overvalued Do you think there's more to the story for VeriSign? Head over to our Community to see what others are saying! For VeriSign, both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiple workups point in the same direction, with the stock screening as overvalued rather than obviously cheap. The broader checks are also weak, which means the burden of proof now sits with future cash generation and earnings to grow into the current valuation. The crux for investors is whether VeriSign can sustain the cash flows and renewal economics implied in today’s price, or whether any stumble in domain demand, pricing or execution would prompt a rethink of how much to pay for this franchise. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VRSN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: $435 million, up 6% year over year. Earnings Per Share (EPS): $2.38, increased 7.7% year over year. Net Income: $217 million, compared to $207 million a year ago. Operating Income: $296 million, up 5.6% from the previous year. Operating Expenses: $138 million, compared to $121 million a year ago. Operating Cash Flow: $232 million, compared to $202 million a year ago. Free Cash Flow: $213 million, compared to $109 million a year ago. Domain Name Base: 179.1 million names, with 12.7 million new registrations in the quarter. Renewal Rate: Expected to be 75.2% for the second quarter of 2026. Cash and Marketable Securities: $1.34 billion at the end of the quarter. Share Repurchase Program: Increased by $884 million, totaling $1.5 billion available. Cash Dividend: $0.81 per share, payable on August 27, 2026. Full-Year 2026 Revenue Guidance: Expected between $1.745 billion and $1.755 billion. Full-Year 2026 Operating Income Guidance: Expected between $1.185 billion and $1.195 billion. Warning! GuruFocus has detected 3 Warning Signs with VRSN. Is VRSN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. VeriSign Inc (NASDAQ:VRSN) achieved a record 12.7 million new domain registrations in the second quarter, marking the largest quarterly increase in its history. The company reported a 6% year-over-year increase in revenue and a 7.7% increase in EPS, demonstrating strong financial performance. VeriSign Inc (NASDAQ:VRSN) returned more than 100% of its free cash flow to shareholders over the past 12 months, totaling $1.17 billion in share repurchases and dividends. The Board of Directors increased the share repurchase authorization by $884 million, bringing the total available to $1.5 billion, indicating confidence in the company's financial health. The delegation of the .web domain into the global Domain Name System's root zone positions VeriSign Inc (NASDAQ:VRSN) to expand its market offerings and potentially increase future revenue streams. The renewal rate for the second quarter of 2026 is expected to be slightly lower at 75.2% compared to 75.5% a year ago, indicating a minor decline in customer retention. Operating expenses increased to $138 million in Q2 2026 from $121 million in the same quarter a year ago, reflecting rising costs. The company does not anticipate meaningful revenue or expenses related to the .web domain for 2026, suggesting that the financial impact of this new offering will not be immediate. Interest expenses are expected to be between $59 million and $65 million, reflecting the impacts of recent refinancing activities. Despite strong new registrations, the company acknowledges that the current strength is not significantly driven by the upcoming .com wholesale price increase, indicating that external factors may not sustain the growth. Q: Jim, can you elaborate on the factors driving the strong domain trends, particularly the role of AI and marketing programs? A: D. Bidzos, CEO: The strong domain trends are driven by our high-assurance infrastructure, AI enhancing demand for domain names, and effective marketing programs. AI tools make it easier for businesses to find domain names and create content, enhancing digital credibility. Our marketing programs and registrar engagement are also significant contributors. While it's difficult to quantify each factor's impact precisely, they work synergistically to drive growth. Q: How do you plan to approach the marketing and pricing of .web compared to .com? A: D. Bidzos, CEO: .web differs from .com as it is not regulated by the Department of Commerce, allowing us complete wholesale pricing flexibility with a six-month notice requirement. We plan to run a Limited Registration Period for .com holders to register their .web domains before general availability. The general availability is expected late this year or early next year, and we have more flexibility in marketing to the channel. Q: With domain growth approaching 5%, do you see AI as a structural driver for this growth? A: D. Bidzos, CEO: AI is increasing demand by making it easier to build domain names and driving more engagement. The DNS's secure, stable, and global nature, governed by ICANN, contributes to the rapid adoption of e-commerce. Our improved engagement with the channel and understanding of their evolving business models also play a role in this growth. Q: Are there any upfront costs associated with the .web rollout, and how will it impact financials? A: John Calys, CFO: There will be some marketing expenses similar to .com and .net, but no significant registry costs as we already operate multiple TLDs. Any marketing expenses this year will be minimal, and revenue recognition will take time to build due to our method of recognizing revenue over the subscription period. Q: Will the focus on .web affect the rollout of new security products? A: D. Bidzos, CEO: No, the rollout of new security products will not be affected. We plan to offer security features benefiting from our high-assurance infrastructure, addressing security challenges in the AI world. These products will be rolled out soon and are designed to meet the demands of compliance with zero trust principles. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in VeriSign, Inc.? Here are five stocks we like better. VeriSign posted stronger Q2 2026 results, with revenue up 6% to $435 million and diluted EPS rising to $2.38. Net income, operating income, and free cash flow all improved year over year, helped by record domain registrations. The company’s .com and .net base reached 179.1 million names, while new registrations hit a record 12.7 million. Management also raised and narrowed full-year 2026 domain base growth guidance to 5.2%–6%. VeriSign announced that .web has been delegated into the DNS root zone and expects to launch sales later this year or early next year. The board also boosted share repurchase capacity by $884 million and approved a $0.81 quarterly dividend. Buffett Trims Apple, Bets Big on Alphabet Ahead of Retirement VeriSign (NASDAQ:VRSN) reported stronger second-quarter 2026 results, citing record domain name registrations, continued solid renewal rates and a rising contribution from artificial intelligence-related tools that management said are making it easier for users to get online. Executive Chairman, President and CEO Jim Bidzos said the company’s combined .com and .net domain name base reached 179.1 million names at the end of the quarter, up 3.05 million from the prior quarter. New registrations totaled a record 12.7 million, compared with 11.5 million in the prior quarter and 10.4 million in the second quarter of 2025. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Why These 3 Market-Beaters Are Backing Up Their Buyback Trucks “VeriSign delivered strong results in the second quarter of 2026, both operationally and financially,” Bidzos said. He also noted that the company marked 29 years of 100% availability for the .com and .net domain name resolution system. Chief Financial Officer John Calys said VeriSign generated second-quarter revenue of $435 million, up 6% from the same period a year earlier. Operating income was $296 million, an increase of $16 million, or 5.6%, from the prior-year quarter. → 3 Photonics Companies Making Quantum Tech Possible 3 American Outperformers Are Lifting and Initiating Dividends Net income totaled $217 million, compared with $207 million a year earlier. Diluted earnings per share were $2.38, up from $2.21 in the second quarter of 2025 and $2.34 in the prior quarter. Operating cash flow was $232 million, while free cash flow was $213 million. That compared with operating cash flow of $202 million and free cash flow of $109 million in the year-ago period. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Calys said VeriSign ended the quarter with $1.034 billion in cash, cash equivalents and marketable securities. That total included $546 million of net proceeds from the issuance of 5.1% senior notes due in 2031. The company redeemed $550 million of outstanding 4.75% senior notes due in 2027 on July 20, reducing liquidity from the quarter-end level. Management raised and narrowed its 2026 guidance for domain name base growth to a range of 5.2% to 6%, citing trends observed in the first half of the year and expectations for the second half. Bidzos said the expected renewal rate for the second quarter was 75.2%, compared with 75.5% a year earlier. He added that the first-quarter renewal rate was the highest VeriSign had seen in 20 years, and that first-time renewal rates have remained in a tight range in the mid-40% area for several quarters. According to Bidzos, the strongest regional growth in the second quarter came from the U.S. and EMEA. He said registrar engagement with VeriSign’s marketing programs and customer acquisition efforts supported demand, while AI tools are making domain discovery, content creation and website creation faster and easier. “The strength in new registrations attests to the vital role of domain names in being discovered and establishing digital credibility,” Bidzos said. In response to an analyst question, Bidzos said several factors were working together, including the company’s infrastructure, registrar execution and AI-related tailwinds. He said it was difficult to precisely separate the impact of each factor. He also addressed whether the upcoming November .com wholesale price increase could be pulling forward demand, saying VeriSign did not view that as “anything coming close to a material factor” in current registration strength. VeriSign updated its full-year financial guidance. The company now expects: Revenue of $1.745 billion to $1.755 billion. Operating income of $1.185 billion to $1.195 billion. Interest expense and non-operating net expense of $59 million to $65 million. Capital expenditures of $55 million to $65 million. A GAAP effective tax rate of 22% to 25%. Calys said the capital expenditure outlook accounts for price increases in server memory chip markets, which he said have had a meaningful impact. He added that VeriSign has pulled forward some spending that otherwise would have been expected next year to avoid known upcoming price increases. Bidzos said VeriSign would continue to make the necessary investments in equipment for its operations “without hesitation.” Bidzos also highlighted VeriSign’s announcement that .web has been delegated into the global Domain Name System root zone, with VeriSign as the registry operator. He said the delegation followed the resolution of previous disputes related to the generic top-level domain. VeriSign plans to begin offering .web domains through channel partners later this year and said it does not currently expect meaningful revenue or expenses from .web in 2026. Bidzos said .web differs from .com because it is governed by a standard registry agreement with ICANN and is not subject to the same cooperative agreement structure that applies to .com. He said VeriSign will have “complete wholesale pricing flexibility” for .web, subject to a six-month notice requirement to registrars, and will be able to sell premium names, which it cannot do for .com or .net. Management outlined the expected launch sequence for .web, including a required 90-day security testing period and a minimum 30-day period for trademark holders. Bidzos said VeriSign also intends to run a limited registration period that would allow .com holders the opportunity to register the corresponding .web name before general availability. General availability is expected either late this year or very early next year, Bidzos said. VeriSign’s board increased the company’s share repurchase authorization by $884 million, bringing total availability under the current program to $1.5 billion. The program has no expiration date. The board also approved a quarterly cash dividend of $0.81 per share, payable Aug. 27, 2026, to shareholders of record as of Aug. 19, 2026. Bidzos said VeriSign returned more than 100% of free cash flow to shareholders over the last 12 months through $1.17 billion in repurchases and dividends. Bidzos said VeriSign has not paused its new product efforts, although it delayed related blog rollouts while focusing on .web delegation. He said the products are security-focused and rely on the company’s infrastructure, public key infrastructure history and DNS security experience. Management said the products are designed for performance, reliability and global scale, with Bidzos pointing to increasing reliance on online services, especially AI-related services, and the need for deeper deployment of security technologies. VeriSign, Inc (NASDAQ: VRSN) is an internet infrastructure company that operates critical components of the global Domain Name System (DNS) and provides cybersecurity-related services. The company is best known as the authoritative registry operator for the .com and .net top-level domains, maintaining the central databases and zone files that enable domain name resolution for millions of websites. VeriSign's registry role is performed under contractual agreements with Internet Corporation for Assigned Names and Numbers (ICANN) and involves high-availability, highly secure operations to support continuous internet connectivity. In addition to its registry business, VeriSign offers a suite of services designed to protect and accelerate DNS and internet traffic for enterprises and service providers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "VeriSign Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

VeriSign (VRSN) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.36 per share. This compares to earnings of $2.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.85%. A quarter ago, it was expected that this internet infrastructure services provider would post earnings of $2.2 per share when it actually produced earnings of $2.34, delivering a surprise of +6.36%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. VeriSign, which belongs to the Zacks Internet - Software and Services industry, posted revenues of $434.6 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.05%. This compares to year-ago revenues of $409.9 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. VeriSign shares have added about 8.1% since the beginning of the year versus the S&P 500's gain of 9.6%. While VeriSign has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for VeriSign was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.39 on $440.52 million in revenues for the coming quarter and $9.45 on $1.75 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software and Services is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Tyler Technologies (TYL), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This information management software provider is expected to post quarterly earnings of $3.09 per share in its upcoming report, which represents a year-over-year change of +6.2%. The consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. Tyler Technologies' revenues are expected to be $646.95 million, up 8.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VeriSign, Inc. (VRSN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RESTON, Va., July 23, 2026--(BUSINESS WIRE)--VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today announced that, according to the latest Domain Name Industry Brief Quarterly Report from DNIB.com, the second quarter of 2026 closed with 401.6 million domain name registrations across all top-level domains (TLDs), an increase of 9.1 million domain name registrations, or 2.3% compared to the first quarter of 2026. Domain name registrations also increased by 29.9 million, or 8.1%, year over year. The .com and .net TLDs had a combined total of 179.1 million domain name registrations in the domain name base at the end of second quarter of 2026, an increase of 3.0 million domain name registrations, or 1.7% compared to the first quarter of 2026. The .com and .net TLDs had a combined increase of 8.6 million domain name registrations, or 5.1%, year over year. As of June 30, 2026, the .com domain name base totaled 166.6 million domain name registrations and the .net domain name base totaled 12.5 million domain name registrations. New .com and .net domain name registrations totaled 12.7 million at the end of the second quarter of 2026, compared to 10.4 million domain name registrations at the end of the second quarter of 2025. Total country-code TLD (ccTLD) domain name registrations were 148.6 million at the end of the second quarter of 2026, an increase of 2.3 million domain name registrations, or 1.6% compared to the first quarter of 2026. ccTLDs increased by 5.2 million domain name registrations, or 3.6%, year over year. The top 10 ccTLDs, as of June 30, 2026, were .cn, .de, .uk, .ru, .nl, .br, .fr, .au, .in and .eu. Information about the statistical methodology used in creating the Domain Name Industry Brief Quarterly Report and DNIB.com’s dashboards is available here. About DNIB.com DNIB.com, sponsored by Verisign, provides global statistical and analytical research and data on the domain name industry, plus analyses of key policy, security, and technology trends. The latest Domain Name Industry Brief Quarterly Report, previous reports, and interactive dashboards with expanded domain name industry data are all available at DNIB.com. About Verisign Verisign (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, enables internet navigation for many of the world’s most recognized domain names. Verisign helps enable the security, stability, and resiliency of the Domain Name System and the internet by providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more please visit verisign.com. © 2026 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, Domain Name Industry Brief, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723750413/en/ Contacts Investor Relations: David Atchley, [email protected], + 1 703-948-3447 Media Relations: Dave McGuire, [email protected], + 1 703-948-3800

(Bloomberg) -- Intel Corp. is expected to report strong second-quarter earnings after the market close Thursday, but even blowout results likely won’t be enough to reverse the stock’s July slide. Most Read from Bloomberg Retina Chip Designed to Restore Sight to Go on Sale in Europe Hegseth Turns to UNC, Virginia Tech After Dropping Ivy League Apple Plans Overhaul of MacBooks, iMac in Push to Meet AI Demand Trump’s 100% Generic Drug Duty Threatens US Low-Cost Supply Apple to Launch ‘Upgrade’ Device Leasing Program With Klarna to Spur Sales The shares are down 27% this month, putting them among the 10 worst performers in the S&P 500 Index, after soaring 278% in the first half for the third-best performance in the broad equities benchmark. The move comes as investors are suddenly selling this year’s winners and souring on chipmakers in particular. The Philadelphia Stock Exchange Semiconductor Index, or SOX, has lost 13% this month and briefly sank into a bear market last week before recovering somewhat. “How investors feel about the semiconductor space is going to call what Intel does here more than what Intel tells you,” said Matt Bryson of Wedbush Securities. “The stock move has been more of a sentiment shift necessarily than being supported by kind of real shifts in earnings power.” Wall Street expects Intel to post a 12% increase in second-quarter revenue to $14.4 billion and earnings of 12 cents per share, reversing a loss of 67 cents a year ago. Gross margins are projected to be about 39%, up from nearly 30% in the same quarter last year. “It’s not that Intel hasn’t gotten better,” Bryson said. “Just it hasn’t gotten better at the same rate that the stock has gotten better.” Intel shares have gained 178% in 2026, putting them on pace for their best year ever in data going back to 1983. That’s the second-strongest showing in the SOX, which has risen 75% this year and is heading for its best annual performance since 2003. The stock took off in early April and kept running, eventually eclipsing its dot-com era high, as the company joined Elon Musk’s Terafab project, issued a blockbuster forecast and President Donald Trump touted a deal with Apple Inc. to design and produce chips in the US. But enthusiasm for semiconductors is starting to fizzle as investors grow concerned about how long the heavy spending on artificial intelligence can last. And that pessimism is now looming over Intel’s results. During its earnings call on Wednesday, Alphabet Inc., one of the biggest AI spenders, raised its outlook for capital expenditures this year to between $195 billion and $205 billion from its previous expectation of $180 billion to $190 billion. Last week’s disappointing market reaction to a strong print from Taiwan Semiconductor Manufacturing Co., the main chipmaker for Nvidia Corp., demonstrates the challenges facing Intel’s stock heading into this report. TSMC increased its revenue and spending outlooks for the year, reflecting confidence in demand for chips and data centers in 2027 and beyond. And yet the company’s American depositary receipts fell. Of course, Intel’s report is likely to offer encouraging signs for investors. There’s strong demand from data center operators for central processing unit chips, known as CPUs, which Intel makes, to the point where there are concerns about whether supply can keep up. Wall Street is also hoping Intel will name more clients for its foundry business, with analysts closely watching its capital expenditures for clues that it has secured new customers. In addition, positive updates on a deal with Apple or the Terafab commitment could give the shares a boost, according to Kim Forrest, founder and chief investment officer of Bokeh Capital Partners. “If those announcements still feel like they’re going forward in the timeline originally outlined, I think the stock reacts well in the shorter term,” she said. The shares got a lift Tuesday when the company confirmed that it will cut jobs in its data center group as part of its effort to reduce costs. But even with healthy earnings and shares well off a record high, Intel may not have much more room to rise because it’s gotten too expensive. The stock is priced at about 74 times earnings over the next 12 months, an extreme premium to its 10-year average of 22. That’s the third highest multiple in the semiconductor index, blowing away rivals like Nvidia, which is priced at less than 20 times forward earnings, and Broadcom Inc. at 23 times. The SOX trades at 23 times projected earnings, and the S&P 500 is at 20 times. “This is a stock where the market is getting ahead of itself, at least on the valuation side,” said Thomas George, portfolio manager at Grizzle Investment Management, which owns Intel shares. “The added hurdle for Intel is its own demanding valuation.” Tech Chart of the Day Top Tech Stories Alphabet raised its capital spending forecast to as much as $205 billion this year, reigniting concerns about a lack of fiscal discipline in the race to dominate artificial intelligence. Tesla Inc.’s profit tumbled despite a strong quarter for its automotive business, pressuring Elon Musk’s plan to refocus the electric vehicle maker on artificial intelligence and robots. Uber Technologies Inc. said it has cut 10% of jobs within its customer service operations as part of a broader effort to simplify its ranks and “embrace artificial intelligence.” Micron Technology Inc. recently gave Tesla Inc. a “significant allocation” of memory chips, according to Elon Musk, helping meet the automaker’s demand for an increasingly precious commodity. International Business Machines Corp. cut its full-year sales outlook, including for its closely watched software unit, after reporting a dip in demand for its mainframe business. Earnings Due Earnings Postmarket: --With assistance from Neil Campling, Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Bitcoin Slump Is Crushing Companies That Stockpiled Tokens How China’s ‘Temu Range Rover’ Became Britain’s Top-Selling Car Van Leeuwen’s Path From a Single Ice Cream Truck to a Dessert Giant Credit Card Holders Are Using ‘Friendly Fraud’ to Get Back at Retailers For Software Engineers, the AI Reckoning Is Already Here ©2026 Bloomberg L.P.