Intel Analysts Dive Into Solid Results, Mixed Guidance

Shares of Intel Corporation INTC spiked in early trading on Friday, even after the company reported the biggest quarterly loss in its history.

Here are some key analyst takeaways from the earnings call.

Wedbush On Intel

Analyst Matt Bryson upgraded the rating from Underperform to Neutral, while raising the price target from $20 to $30.

The first quarter was “something of a mixed bag” for Intel, Bryson said in the upgrade note. “INTC revenues and sales guidance certainly exceeded our revenue and EPS expectations despite some greater than expected headwinds in the general data center market,” he wrote.

“Conversely, GMs missed our prior expectation and are now expected to dip even further in CQ2 to 37.5%,” the analyst wrote. There is no “significant negative near-term catalyst on the horizon,” he added.

Benchmark On Intel

Analyst Cody Acree upgraded the rating from Hold to Buy, while setting a price target of $39.

Intel’s outlook reflects a “worst-case scenario,” considering the current macroeconomic environment, Acree said.

“While the future pace of the sector’s recovery is uncertain, we do believe that Intel has reached a revenue, gross margin, and profit trough through this first half of ’23 and that subsequent quarters will provide a more constructive backdrop for the improved efficiencies of its operations to deliver incrementally stronger results,” he added.

Check out other analyst stock ratings.

Truist Securities On Intel

Analyst William Stein maintained a Hold rating while raising the price target from $29 to $32.

“INTC beat Q1 expectations on client revenue upside,” Stein wrote. He added that Intel’s “operational reports (manufacturing process improvements, new products, and cost-cutting) were all constructive.”

The analyst pointed out, however, that one quarter “doesn't make a trend.”

Needham On Intel

Analyst Quinn Bolton maintained a Buy rating while raising the price target from $32 to $36.

“We believe Intel is turning the corner in C1H23,” Bolton said. Its processor roadmap “appears to have stabilized, and Sapphire Rapids is stabilizing DC share,” he added.

Intel remains on track “for achieving 5 nodes in 4 years,” the analyst wrote. He expects the company’s gross margins to trough in the second quarter and “steady improvement through 2023 and 2024.”

Intel’s revenue “appears to have bottomed in 1Q23 and is expected to grow Q/Q through 2023,” Bolton further stated.

KeyBanc Capital Markets On Intel

Analyst John Vinh reiterated a Sector Weight rating on the stock.

“On PCs, demand remains muted as inventory digestion continues but is expected to be at normalized levels exiting 2Q, while INTC reaffirms its 270M (-8%) PC unit outlook in 2023,” Vinh wrote in a note.

“In data center, demand is expected to remain weak in 1H23 across cloud, enterprise, and China; however, it was further through the correction in servers,” he added.

INTC Price Action: Shares of Intel had risen by 4.17% to $31.17 at the time of publishing Friday.

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Photo: Weldon Kirsch via Intel