Technology

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We trim our 12-month target to $45 from $50, on P/E of 18.8x our ’25 EPS view, near peers/above historical. We adjust our ’24 EPS to $1.45 from $1.94 and ’25 to $2.40 from $2.69. INTC posts Q4 EPS of $0.54 vs. $0.15, beating the $0.45 consensus. Revenue rose 10%, above our view, as growth in Client Computing (+33%) was partly offset by declines in Data Center and AI (-10%) as well as Network and Edge (-24%). Gross margin expanded 5 percentage points to 48.8%, on cost efficiencies and improving utilization. Soft Q1 sales/margin guide ($12.7B/44.5% at mid-point; consensus at $14.2B/45.1%) reflects greater-than-expected seasonality as well as PSG/Mobileye/foundry weakness, but we think competitive pressures/wallet share loss remain a major issue within data center servers. We like prospects

Rosenblatt analyst Hans Mosesmann reiterates Intel with a Sell and maintains $17 price target.

Intel (NASDAQ:INTC) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/26/2024 26.06% Mizuho $58 → $55 Maintains Buy 01/26/2024 42.1% Benchmark $52 → $62 Maintains Buy 01/26/2024 -61.04% Rosenblatt → $17 Reiterates Sell → Sell 01/26/2024 -10.61% Goldman Sachs $34 → $39 Maintains Sell 01/26/2024 10.02% Wells Fargo $52 → $48 Maintains Equal-Weight 01/26/2024 -8.32% Wedbush $45 → $40 Maintains Neutral 01/26/2024 19.18% Raymond James $54 → $52 Maintains Outperform 01/26/2024 — Needham Downgrades Buy → Hold 01/26/2024 — Summit Insights Group Downgrades Buy → Hold 01/23/2024 -61.04% Rosenblatt → $17 Reiterates Sell → Sell 01/23/2024 14.6% Cantor Fitzgerald → $50 Initiates Coverage On → Neutral 01/19/2024 23.77% Raymond James $48 → $54 Maintains Outperform 01/18/2024 -3.74% Susquehanna $38 → $42 Maintains Neutral 01/16/2024 0.85% Barclays $32 → $44 Maintains Equal-Weight 01/04/2024 51.27% Tigress Financial $46 → $66 Maintains Buy 01/02/2024 3.14%

On the heels of Intel’s tepid 1Q sales guidance, Needham downgrades shares of the chip maker to hold from buy. In a research note, Needham says Intel’s current elevated valuation, reduced revenue estimates, increasing competition in core and non-core markets and distant Intel Foundry Services revenue contributions are all setting up for a more difficult road ahead. Needham says that even after Intel’s after-hours selloff, its valuation topping 20x the firm’s reduced 2025 EPS estimate isn’t compelling compared to faster growing AI peers. Intel down more than 9% premarket to $44.69.

The following is a summary of the Intel Corporation (INTC) Q4 2023 Earnings Call Transcript: Financial Performance: Intel reported Q4 revenue of $15.4 billion, up 9% sequentially and 10% year-over-year, with a gross margin of 48.8%. Earnings per Share (EPS) was $.54 for the quarter, reflecting successful cost and operational management. Intel’s operating cash flow for Q4 was $4.6 billion, demonstrating good liquidity. CCG generated revenue of $8.8 billion, a year-on-year increase of 33%. DCAI revenue stood at $4 billion, with Mobileye contributing a record revenue of $637 million. Business Progress: Progress on IDM 2.0 strategy saw Intel taking significant steps towards their 2023 financial commitments amid macroeconomic headwinds. The Client Computing Group saw a boom in gaming and commercial segments and achieved record notebook shipments. Server business under DCAI experienced double-digit growth sequentially. Mobileye design wins are anticipated to bring in over $7 billion of future revenue. Intel plans