Amid a panic in semiconductor stocks, Intel (INTC) bucked the trend. The CPU supplier for the PC market posted an EPS of $0.41, despite revenue falling by 7.7% Y/Y to $14.16 billion.
Intel expects Q4 revenue of $14.6 billion - $15.6 billion in Q4. EPS will be $0.23. AMD (AMD), TSM Semiconductor (TSM), and Apple (AAPL) need to worry about Intel’s renewed strength. For now, Nvidia (NVDA), which leads the AI GPU market, is fine.
Intel posted health gross margins of almost 46%. It executed well by managing its spending at the team level. Product execution is improving. The firm continues to launch products that compete effectively in the marketplace. For example, on the client side, profitability is rebounding.
Next year, Intel will execute its long-term plans to design products effectively. It has already optimized its test times, for example. This frees resources to work more productively, and increase profits.
For Q4 and 2024, expect Intel to exceed its guidance. The firm enjoys strong demand for its products and services. This includes the PC, data center, and cloud markets.
Investors need not pay a premium P/E for cloud providers. Instead, consider INTC stock at these levels despite the strong post-earnings rise.
