Tech Earnings Play: Two Stocks Primed to Pop Before Reporting Season

Wall Street’s hype machine is warming up—these picks might actually justify the buzz. Nvidia’s AI dominance faces its next reality check, while AMD’s data center surge could surprise. Both trade at only 30x forward earnings (a bargain in this circus). Just don’t ask about their Chinese exposure.

Intel Corporation (INTC)

Intel’s earnings report is slated to come out this week, the first under new CEO Lip-Bu Tan. Analysts anticipate Intel will report its fourth consecutive quarterly revenue decline, highlighting the challenges Tan faces. According to LSEG, Intel’s revenue is expected to drop by 3.4% year-over-year to $12.7 billion, with losses increasing to $945 million compared to $381 million the previous year. Additionally, the company’s personal computer (PC) segment is predicted to see an 11% decrease in revenue, while the data center business may decline slightly.

However, Zacks researchers suggest that deeper data signals gains ahead. The Zacks Earnings ESP aims to grab the inside track on the latest analyst estimate revisions ahead of a company’s report. Most tech stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market.

Intel (INTC) holds a #3 Hold at the moment. Thus, if the broader market performs well and the earnings report exceeds expectations, INTC stock could shine.

Lam Research (LRCX)

Additionally, Lam Research (LRCX) is readying to report earnings on April 23, 2025, The tech stock currently sits at a Zacks Rank #2 (Buy), stronger than INTC. Lam Research has an impressive earnings surprise history. In the last reported quarter, LRCX delivered an earnings surprise of 4.6%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.9%.

Year-to-date, LRCX is down 12%, but that is far better than most top tech stocks. Further, beating earnings estimates could send Lam Research shares surging towards $100, a figure not seen since Summer 2024.