Intel rises even as Goldman Sachs cuts earnings estimates on ‘muted’ PC demand
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Contributor since / Followers
Contributor since / Followers
1 month ago
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- Intel (NASDAQ:INTC) shares rose 1.4% in afternoon trading on Thursday, even as Goldman Sachs lowered its earnings estimates on the semiconductor giant, citing “muted” PC demand.
- “… [W]e reduce our 2025/26 non-GAAP EPS (excl. SBC) estimates by 7% as we reflect a slower recovery in the PC CPU and FPGA businesses, partially offset by a more constructive outlook for server CPUs,” analyst Toshiya Hari wrote in a note to clients. “While we believe management is taking the necessary steps to right-size the organization, we remain guarded on the stock as we have yet to see signs that indicate a return to process technology leadership (if anything, Intel may continue to outsource a significant fraction of its client CPU tiles to TSMC beyond 2025, per our checks), and as Intel continues to lack a meaningful presence in the lucrative data center accelerator market.”
- Hari maintained his Sell rating and $21 price target on Intel.
- A consensus of analysts expect Intel to lose $0.03 per share on $13.04B in revenue for the coming quarter.