PC gamers have low expectations for Intel (INTC). So do investors. When Intel posted an EPS of 87 cents
(non-GAAP) on $18.4 billion in revenue, the stock fell anyway. INTC stock closed at $43.59, down 6.94%
after the Q1 report. What are markets worried about?
Intel reaffirmed its guidance for the year. It expects revenue of $76 billion and adjusted EPS of $3.60. For
the second quarter, EPS is 70 cents, three cents below consensus. Revenue is around $18 billion. Despite
the good numbers, INTC fell post-earnings as per tradition. The U.S. economy is contracting. China
closed its economy starting in late March, in major cities including Shanghai and parts of Beijing. Intel
only needs corporate business orders for PCs rising to exceed estimates. China may reopen its market
any time from here.
Intel’s results hurt Nvidia (NVDA) and AMD (AMD). Despite those firms in distinctly unique parts of the
computer market, panic overtook rational thought. Intel’s Alder Lake will demonstrate strong consumer
demand throughout 2022. The platform supports DDR5 memory for the first time. AMD is refreshing its
platform to AM5 later this year. It will also update its RX graphics cards to the 6x50 series.
Nvidia will come out ahead in the GPU market with the 4000-series RTX cards.
