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

Intel is likely to face margin headwinds stemming from 7nm start-up costs, supply constraints, 10nm volume growth, competitive pricing pressure and increased operating expenditures, he said. This will pressure margins in 2021 and 2022, Bolton said. 

New CEO Pat Gelsinger is following the right strategy of focusing on regaining technological leadership and defending market share, the analyst said, expressing confidence in a potential turnaround.

KeyBanc Says ‘Intel Remains Undervalued:' Intel noted PC strength along with improving enterprise and government demand in the data center group, Twigg said in a note.

The company called the first quarter the bottom in data center, with sequential growth expected through the year, the analyst said.

Intel can protect itself from the risk stemming from Arm-based chips through its foundry strategy, he said.

Intel's investment in foundry growth and new technology nodes, though pressuring margins, will lead to top-line growth over the next few years, Twigg said. 

"We're encouraged by the new leadership and strategy, and we believe Intel remains undervalued in this era of rapidly expanding compute." 

Roth On Intel's Manufacturing Cadence: Intel's results reflected strong data center demand throughout 2021, offset by the continued client segment impact of manufacturing constraints, Desilva said in a note. 

Gelsinger has done a good job articulating Intel's focused IDM2.0 strategy, with foundry and x86 licensing opportunities in large hyperscale customers looking for design flexibility, the analyst said. 

"We expect INTC to return to a more robust manufacturing cadence with annual performance improvements as a goal," he said. 

Recovering data center demand through 2021 will likely be offset by continued client segment impact of manufacturing constraints, according to Roth Capital. 

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