5 Intel Stock Analysts On Chipmaker's Q1 Results, Foundry Strategy, Investments

5 Intel Stock Analysts On Chipmaker's Q1 Results, Foundry Strategy, Investments

Photo courtesy of Intel

Intel Corporation INTC shares are dropping after the chip giant's first-quarter earnings report. 

The Intel Analysts: Rosenblatt Securities analyst Hans Mosesmann reiterated a Sell rating on Intel with a $40 price target.

Needham analyst Quinn Bolton maintained a Buy rating and reduced the price target from $74 to $70.

KeyBanc Capital Markets analyst Weston Twigg maintained an Overweight rating and $86 price target.

Roth Capital Partners analyst Suji Desilva maintained a Neutral rating and $65 price target.

Raymond James analyst Chris Caso reiterated an Underperform rating.

Intel Set For Challenging 2-3 Years, Rosenblatt Says: Intel's first-quarter beat and tepid 2021 guidance mark the year as a transitional one characterized by start-up and yield issues with 10nm and 7nm, new products that aren't good enough, residual cloud inventories, IDM 2.0 costs, and industry shortages, Mosesmann said in a note.

These issues will not go away in the first half of 2022, the analyst said.

The Intel Alder Lake client and Sapphire Rapids Xenon ramps, along with the new 10nm SuperFin and new CPU architectures, increase execution risk, the analyst said.

Margins will likely be pressured, at least until 7nm is at scale or the 2024 timeframe, he said.

"Even assuming a benign view of Intel's IDM 2.0 and Foundry Services strategy, longer-term that is, Intel is set for a very challenging 2-3 years in terms of share loss, margin pressure, and heightened execution risk by juggling many more balls in the air than ever before."

Needham Anticipates Intel Turnaround: Intel's first-quarter results were better than expected and the guidance for the second quarter is mixed, Bolton said in a note.

The company increased its 2021 revenue guidance by $500 million and EPS guidance by 5 cents while reiterating the gross margin guidance, the analyst said. 

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