When Advanced Micro Devices (AMD) reports quarterly results this week, the stock could go in either direction. It could impress shareholders with its usual strong results and bright outlook. Conversely, its unfavorable valuation may send the stock lower.
Intel (INTC) plunged, as it always did before, after posting results. Trading at the bottom of its trading range, the stock is at lower risk than ever. The company posted revenue growing by a meager 4% Y/Y to $19.5 billion. It set Q1 guidance of $18.3 billion in non-GAAP revenue. EPS will be $0.80, ahead of the $0.77 consensus.
Data Center grew by an impressive 20% Y/Y. The momentum will accelerate to the upside as Intel introduces a replacement to the Xeon server line-up.
The Internet of Things group, which includes Mobileye, also rose. Investors get autonomous driving growth at a fraction of valuations found elsewhere. For example, speculators who bought post-SPACs in the self-driving or LiDAR market would have lost most of their investment. Look at Velodyne (VLDR) or Ouster (OUST). Both are down by over 80%.
In the current quarter, Intel will shake up the graphics market with the product code-named Ark. AMD and Nvidia (NVDA) enjoyed rich margins from the chip shortage. Crypto mining is starting to lose steam, which will hurt demand. Intel will enter the market at the perfect time.
Investors should consider INTC stock before shares rebound.
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