Shares of Intel (NASDAQ:INTC) jumped at the time of writing on the back of the company’s stellar Q2 results, which have caught Wall Street analysts’ attention, triggering positive reviews. KeyBanc Capital Markets’ John Vinh highlighted Intel’s Client Computing Group’s notable performance, driven by the strong demand for Chromebooks and high-end notebooks, and its market share gains. Furthermore, with inventory levels finally striking a healthy balance, third-quarter shipments are now mirroring consumption data, leaving Vinh reassured.
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TD Cowen’s Matthew Ramsay lauded Intel’s Client Computing results as well but indicated that the modest guidance could act as a catalyst for the company to regain some traction. Ramsay noted persistent challenges in Intel’s Data Center and AI group, including cloud share losses and the shift in AI spending. Despite these, a streamlined Client channel looks promising. Harlan Sur of J.P. Morgan also voiced his approval of Intel’s transition into a “gradual recovery phase.” However, he pinpointed certain weak areas, such as Networking and Edge. Sur is keen to see Intel successfully execute high-volume production and shipments of its Meteor Lake (PC client) and Emerald Rapids (server) platforms later this year.
Overall, analysts have a Hold consensus rating on INTC stock based on four Buys, 16 Holds, and six Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $34.91 per share implies some downside risk.
