INTC
The earnings beat had a catch
Intel showed up with a better-than-expected first quarter, and the stock did what stocks do when they smell relief: it jumped hard. Revenue came in at $13.58 billion and non-GAAP EPS hit 29 cents, both comfortably ahead of estimates. Management also guided Q2 revenue above consensus, which is usually the kind of thing that gets traders reaching for the buy button.
But the skeptics are still in the room
Here’s the awkward part: several analysts basically said, “Nice quarter, now prove it wasn’t a one-off.” BofA kept an Underperform rating, JPMorgan stayed Underweight, and Rosenblatt stuck with Sell — even as all three lifted price targets. That’s Wall Street in one sentence: the stock can rise, but the trust fall is still in progress.
What they’re worrying about
The bear case wasn’t subtle. The analysts pointed to:
- Gross margins that still aren’t exactly sparkling
- Continued cash burn, which is never the vibe you want
- Foundry business still needing to prove itself with outside customers
- PC demand that may face pressure again down the road
Needham was a bit more upbeat, noting Intel said supply constraints may have capped Q1 revenue by more than $1 billion and that 18A yields are ahead of internal plans. Translation: there’s real operational improvement here, but the market wants more than a promising PowerPoint.
Big picture
Intel is getting the kind of quarter that can fuel a rally and a debate at the same time. If the turnaround keeps building, the stock may have more room to run. If margins wobble or foundry momentum stalls, though, the skeptics will be back out with their red pens in no time.