Analysts’ consensus rating on the stock has been hold for the last three months, and that makes sense. Considering the modest estimates, the actual results might set-off a stock rally this time. Meanwhile, the average 12-month price target of $55.43 is far below the current levels.
After beating the forecast in all of the trailing four quarters, the company is likely to maintain the trend this time too
The management’s increased focus on the data-centric product portfolio seems to be paying off. Statistics show that the segment accounted for nearly 50% of Intel’s revenues last year. If the outcome is positive, the upcoming earnings report will bear testimony to the success of the data-centric strategy.
In the December quarter, Intel’s adjusted earnings climbed 18% to $1.28 per share, on the back of a 9% growth in revenues to $18.7 billion. The revamped product portfolio and the recovery of the memory chip market, which fuelled the growth, are expected to continue in the coming months.
Last month, Micron (MU) reported double-digit declines in second-quarter earnings and revenues as the main business segments were hit hard by unfavorable pricing conditions and faltering demand for memory chips. Among others, Nvidia (NVDA) will be publishing first-quarter earnings on May 16 in the afternoon. Advanced Micro Devices (AMD) is slated to release results for the March quarter on April 30.
Last week, Intel shares gained sharply and reached a 19-year high after the company exited its 5G mobile modem business. The stock has gained 25% so far this year, recovering from last year’s tech selloff.