Intel’s stock saw a significant 10% jump on Friday following the company’s surpassing of Wall Street’s profit and sales expectations. The chipmaker reported adjusted earnings per share of 41 cents, higher than the estimated 22 cents by LSEG. Moreover, Intel generated $14.16 billion in revenue for the quarter, outperforming analyst predictions of $13.53 billion. However, this still represented an 8% decrease compared to the same period last year, marking Intel’s seventh consecutive quarter of declining sales.
The boost on Friday can largely be attributed to robust demand for PCs and the company’s ability to remain on track with its previously outlined initiatives. Intel’s premarket surge came after a decline earlier in the week due to reports of Nvidia’s plan to expand into PC chips through a collaboration with Arm. Market analysts from Goldman Sachs noted that their expectations for Intel were too conservative but expressed concerns about the company’s transformation and its relatively new chip-manufacturing business, known as the foundry.
Addressing their concerns, Morgan Stanley analysts highlighted Intel’s positive performance in the AI sector and its foundry business. They noted that the company’s “roadmap is a show-me situation for large customers.” CEO Pat Gelsinger confidently stated that Intel is on track to achieve its goal of $3 billion in savings for the year, a fact that was praised by JPMorgan analysts in an investor note.
JPMorgan analysts also increased their price target for Intel from $35 to $37, emphasizing that the company’s upcoming data center product launches and other developments could provide insights into the progress of its long-term goals over the next few years.
Overall, Intel’s strong earnings, coupled with positive market sentiment, have positioned the company for potential growth and recovery.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
