Shares of Intel continues to rise in defiance of the
overall tech sector!
It is suggested that the U.S. could next target
advanced packaging equipment sales as part of its efforts to contain China's
Although Intel has fallen behind rivals in
leading-edge technology nodes over the past few years, one area it has kept up
its competitive chops has been in advanced packaging. Intel has two main
platforms, including EMIB (embedded multi-die interconnect bridge) for 2D
packaging, and Foveros, its 3D advanced packaging platform.
Intel has been on an upward trajectory lately
providing positive updates. Executives have held numerous events outlining how
the company remains on track to scale five nodes in four years, and catch up to
rivals on advanced processes by 2025.
The company recently received a large customer
prepayment for its burgeoning foundry services, and CEO Pat Gelsinger hinted
the current quarter is tracking above the midpoint of guidance.
The U.S.-China tensions, while potentially harming
parts of its CPU sales, could have the perverse benefit of quickly boosting
Intel's foundry and advanced packaging house. That could fuel Intel's rise as a
leading advanced packaging player to take on the East Asian leaders in these
Why the INTC Weekly
Options Trade was Originally Executed!
Corporation (NASDAQ:INTC) is having a solid quarter, according to
incumbent's leader’s encouraging remarks about its current fundamentals,
causing its stock to close Thursday nearly 2% higher. That was a notably better
performance than that of the S&P 500 index, which slipped by almost
0.2% on the day.
In an industry conference Thursday, Intel CEO Pat Gelsinger waxed
optimistic about the company's current (third) quarter. Speaking about the
guidance it offered for the period, the executive said, "Taking all of
those things together at this point, we say we're above the midpoint of our
guide for Q3. So we're feeling good about Q3 as that progresses."
That pronouncement came only a few days after the latest bullish
development with Intel. On Wednesday, the company announced it would roll out a
new data center chip, the Sierra Forest, that is far more efficient in terms of
power use than its present offerings. This is sure to be a compelling new
product for data center operators looking to save costs and/or make their
If Intel ends up doing well against its guidance for the third quarter,
it wouldn't be the first instance in recent times. The tech giant's
second-quarter results landed on the high side of its guidance range, one of
the numerous positive developments for the company during the period.
analysts tracking the stock are anticipating nearly $13.5 billion in revenue,
down from almost $15.3 in the third quarter of 2022. Per-share earnings should
come in at $0.21; the year-ago result was $0.59.
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Gelsinger’s comments Thursday at a
Deutsche Bank technology conference…..
“At this point, we say we’re above
the midpoint of our guide for Q3, so we’re feeling good about Q3 as that
progresses,” he said. “Overall, as we look at the current environment,
obviously we’ve been through a strong bust-boom cycle.”
In July, Intel projected sales in
the current period will be as much as $13.9 billion, compared with an average
analyst estimate of $13.3 billion at the time. While sluggish demand in China
and lower orders from some large data-center owners are weighing on its
server-chip unit, PC processor inventory is now back to normal, prompting
customers to resume ordering.
Gelsinger emphasized that he thinks
Intel is on track to meet his ambitious goals to overhaul the Santa Clara,
California-based company and restore it to the forefront of an industry it once
“We’re 2.5 years into the
transformation. Now, it’s sort of gone the way I would have expected at the
time in terms of rebuilding the company,” he said. “You have to be much less
skeptical about our ability to pull this off.”
Gelsinger conceded that rival Nvidia
Corp. has done well in positioning itself to take advantage of demand for
systems needed to support the rapid spread of artificial intelligence software,
but said Intel will soon begin to win orders in the market for these
“They’re doing well. We all have to
give them credit,” he said. “But we’re going to show up.”
On Monday after the market open, Intel said at a tech industry conference
that its Sierra Forest chip will boast 240% better performance per watt than
the data center chip it presently has on the market. According to Reuters, this
is the first time the company has divulged such a statistic for one of its
This means that Sierra Forest will be able to handle far more processing
work for the power it uses than current offerings. As we're in an environment
where green solutions are becoming more important than ever, this news
resonated with investors. Because of their nature, data centers use vast
amounts of electricity to power their operations.
Intel said the Sierra Forest will hit the market next year. It did not
get more specific.
At that point it will have two data center chip lines, Granite Rapids and
Sierra Forest. Granite Rapids will consume more power, but apparently will
compete on performance.
According to the issued ratings of 33 analysts in the last
year, the consensus rating for Intel stock is Hold based on the current 6 sell
ratings, 21 hold ratings and 6 buy ratings for INTC. The average twelve-month
price prediction for Intel is $33.55 with a high price target of $46.00 and a
low price target of $17.00.
Intel traded up $0.61 during trading on Thursday, reaching $35.14. 48,133,730
shares of the company’s stock traded hands, compared to its average volume of
43,026,027. The company has a quick ratio of 1.15, a current ratio of 1.60 and
a debt-to-equity ratio of 0.44. Intel Co. has a fifty-two week low of $24.59
and a fifty-two week high of $37.19. The company has a 50-day simple moving
average of $33.96 and a 200-day simple moving average of $31.36. The firm has a
market cap of $147.17 billion, a PE ratio of -159.72 and a beta of 0.89.