{"id":42294,"date":"2023-07-30T13:13:43","date_gmt":"2023-07-30T17:13:43","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/intel-offers-a-breath-of-fresh-air-but-wall-street-still-has-concerns-about-the-stock\/"},"modified":"2023-07-30T13:13:44","modified_gmt":"2023-07-30T17:13:44","slug":"intel-offers-a-breath-of-fresh-air-but-wall-street-still-has-concerns-about-the-stock","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=42294","title":{"rendered":"Intel offers a \u2018breath of fresh air,\u2019 but Wall Street still has concerns about the stock"},"content":{"rendered":"
\n

Intel Corp.\u2019s latest earnings \u2014 and the market\u2019s reaction to them \u2014 are a study in relativity.<\/p>\n

The chip company\u2019s second-quarter results, put out Thursday afternoon, were \u201cquite strong at least relative to expectations,\u201d according to Bernstein analyst Stacy Rasgon, who called out better-than-anticipated performance of the data-center and client-computer businesses. Yet, simultaneously, he saw Intel\u2019s
\n INTC,
\n +6.60%<\/bg-quote>
\n earnings as \u201cobjectively bad with continued near-term data-center headwinds, key businesses still losing money, and $3 [billion] in continued cash burn.\u201d<\/p>\n

\n

Once a vocal bear on Intel\u2019s stock, Rasgon moved to a market-perform stance in April, and he wrote Thursday that he and his team \u201cadmit to warming (very slightly)\u201d to Intel\u2019s story, even though they saw \u201cmore than enough here to keep us sidelined for now.\u201d<\/p>\n

He lifted his price target on the stock to $34 from $32 in his most recent note, while saying that the company still has \u201can awful lot of wood to chop.\u201d<\/p>\n

Still, after recent high-profile missteps, the company\u2019s fairly low-drama earnings have Wall Street feeling a bit more relieved Friday, with shares up about 6% in premarket trading.<\/p>\n

Opinion<\/strong>:\u00a0Intel sees a huge AI opportunity \u2014\u00a0but its clock is ticking<\/p>\n

Truist Securities analyst William Stein also took a measured stance, saying that while Intel logged its second straight \u201cgood\u201d quarter, investors shouldn\u2019t \u201cget too excited.\u201d<\/p>\n

Quarters \u201cmake a fragile trend,\u201d Stein wrote, and he remains skeptical about the long-term market potential for Intel\u2019s x86\u00a0processor. Plus, \u201cif a turnaround is lasting, we will have time,\u201d he wrote. <\/p>\n

\u201cWe acknowledge that INTC\u2019s execution has improved significantly in the last two quarters,\u201d Stein added, but said the company could face a \u201clasting problem\u201d stemming from a shift in spending toward high-end artificial-intelligence systems and competitive risks from Nvidia Corp.
\n NVDA,
\n +1.85%<\/bg-quote>.<\/span>\n <\/p>\n

Read<\/strong>: Nvidia is \u2018dominating\u2019 and could unlock $300 billion in AI revenue by 2027, analyst says<\/p>\n

He has a hold rating on Intel shares but boosted his price target to $37 from $32.<\/p>\n

Hans Mosesmann of Rosenblatt Securities deemed the June period \u201ca solid recovery quarter for Intel with mixed implications for the shares\u201d given a bottoming of the PC cycle but an \u201cuncertain data-center trajectory.\u201d Data-center momentum is \u201cmost important for any bull case,\u201d in his view.<\/p>\n

\u201cFinancially, Intel has clearly cast a model to slowly deliver on longer-term goals, setting expectations for a prolonged ramp,\u201d he wrote. The company is executing well off a \u201ca weak starting point,\u201d he said, but \u201ctime will tell on the trajectory.\u201d<\/p>\n

For now, he rates the stock a sell with a $17 target price. <\/p>\n

Don\u2019t miss: <\/strong>Nvidia gets more good news from Big Tech, even as AI spending \u2018may not lift all boats\u2019<\/p>\n

Intel\u2019s results and commentary suggested to C.J. Muse of Evercore ISI that management is \u201cclearly executing to its plan,\u201d something that he said is \u201cfrankly is a breath of fresh air from Intel.\u201d<\/p>\n

Muse highlighted that Intel\u2019s operating expenses are trending below prior estimates, while the company is on track with cost-savings plans and, critically, areas like product and process roadmaps as well as build plans at its Arizona fab.<\/p>\n

\u201cSimply put, this was a solid quarter for Intel \u2014 showing positive signs of execution in controlling what they can and continuing to progress on the company\u2019s roadmap and IDM 2.0 strategy,\u201d he wrote, referring to Intel\u2019s tagline for its foundry ambitions. <\/p>\n

Muse maintained his in-line rating on Intel shares but said he continues to see it as a \u201ctactical long\u201d as earnings continue to move higher off the bottom. He lifted his price target to $40 from $36 Friday.<\/p>\n

\u201cThere is still plenty of wood to be chopped in the path to [CEO Pat Gelsinger\u2019s] IDM 2.0 vision fully materializing, but the company seems to be on the right track,\u201d he wrote. \u201cAnd while we do remain cautious around [Intel\u2019s] positioning in the evolving compute paradigm and competitive landscape, if the company proves to be successful in its plan, there is clearly plenty of room for the stock to move higher.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Intel Corp.\u2019s latest earnings \u2014 and the market\u2019s reaction to them \u2014 are a study in relativity. The chip company\u2019s second-quarter results, put out Thursday afternoon, were \u201cquite strong at least relative to expectations,\u201d according to Bernstein analyst Stacy Rasgon, who called out better-than-anticipated performance of the data-center and client-computer businesses. Yet, simultaneously, he saw […]<\/p>\n","protected":false},"author":1,"featured_media":42295,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-42294","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nIntel offers a \u2018breath of fresh air,\u2019 but Wall Street still has concerns about the stock | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Intel Corp.\u2019s latest earnings \u2014 and the market\u2019s reaction to them \u2014 are a study in relativity. 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