Intel Floats Higher Ahead of Earnings Report

Ahead of its quarterly earnings report set for later this month, Intel (NASDAQ:INTC) is on the way toward a 52-week high. Despite Advanced Micro Devices (NASDAQ:AMD) finally getting its CPU at an advantageous spot in desktop and server, Intel shares keep bouncing back.
Why?

AMD’s 5000-series Ryzen gets it right this time. It outperforms Intel’s desktop on power consumption, heat dissipation, and price. Since Ryzen’s latest CPU is in short supply, AMD cannot grow its market share. It may only boast about the favorable reviews.

Intel’s ‘Rocket Lake’ desktop processor is good enough. The chip giant has the supply and competitive edge to sell more chips. At lower prices than AMD, Intel can stay in the game while it figures out how to advance its chip manufacturing. Until it makes chips below 10 nanometers, INTC stock is vulnerable.

AMD is ahead of Intel in the server space. EPYC is a better proposition for its customers. When it reports quarterly results, look for Intel to continue reporting growth from server revenues. Any disappointment will send the stock lower after the earnings report.

Given the chip shortage, Intel’s margins should hold, regardless of its product disadvantage. The company needs to update its product roadmap, announcing advancements this year.