Business & Investment

Intel Revenue First Sees How Shortages Affect US Chipmakers in 2021

Intel Corp., like all major chip makers, surveys quarterly revenue reports on how the industry can quickly alleviate supply problems that have plagued semiconductor customers in most of COVID-19. To do.

Intel
INTC,
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We plan to report first quarter earnings on Thursday after the market closes. This report will be Pat Gelsinger’s official CEO after the newly announced successor to Bob Swan speaks at the conference call. Last quarter About his evaluation of the company’s turnaround plan.

Gelsinger has already made waves since its acquisition.He announced Ambitious manufacturing expansion plan Last month, and more recently, Intel told Reuters that it was men discuss with companies such as Design chips for car makers We will start manufacturing these chips to solve a wide range of supply shortages.

read: Global tip shortage expExpected to continue until next year, which is good news for semiconductor stocks

These plans have been praised by most investment communities, but are beginning to get backlash from analysts wondering if Intel can turn the carrier in time. Last Thursday, Intel shares were downgraded from Raymond James’ Chris Casso to “Underperform.” Concerned about chipmaker’s path to regaining former glory There may be a shortage.

First-quarter earnings are not expected to show an immediate turnaround for Intel, as third-quarter revenue appears to decline year-over-year and revenue is expected to decline significantly from a year ago. Hmm. That’s a big reason investors want to know more about Gelsinger’s long-term plans and how Intel can take advantage of the current semiconductor shortage to find the boost it needs.

What to look for

Revenue: Of the 35 analysts surveyed by FactSet, Intel is expected to average an adjusted earnings of $ 1.14 per share. This is down from $ 1.45 per share reported in the year-ago quarter. Intel forecasts $ 1.10 per share. Estimize, a software platform that uses crowdsourcing from hedge fund executives, brokerage firms, buy-side analysts and more, is seeking $ 1.21 in earnings per share.

Revenue: Wall Street expects to generate $ 17.77 billion in revenue from Intel, according to 30 analysts polled by FactSet. This is down from the $ 19.83 billion reported in the year-ago quarter. Intel forecasts revenue of about $ 17.5 billion. Estimize expects to generate $ 18.36 billion in revenue.

Analysts said they had $ 10.11 billion in revenue from the traditional PC group Client Computing, $ 6.18 billion in data center revenue, $ 590.3 million in revenue from non-volatile memory solutions, and the Internet of Things or IoT. , Expects revenue of $ 1.01 billion. Mobileye’s revenue is $ 344.2 million.

Inventory movement: Intel’s share price rose 28.5% in the first quarter.Average of 30 Dow Jones Industrial Averages during the same period
DJIA,
+ 0.48%

Count Intel as a Component — 7.8% Up in S & P 500 Index
SPX,
+ 0.36%

5.8% increase, technology-intensive Nasdaq Composite Index
COMP,
+ 0.10%

2.8% increase, PHLX Semiconductor Index
COMP,
+ 0.10%

It increased by 11.8%.

What the analyst is saying

Raymond James’s Caso isn’t optimistic about Intel’s long-term outlook, but that’s not the case in the short term, he said.

“Our call is not a quarterly call. The company is already up in the first quarter and provided year-round guidance a month ago, and we believe the short-term situation remains strong. “Casso said.

Matthew Ramsey, a Kawen analyst with an outperform valuation and a $ 80 price target, said investors would like to see if Intel provides updates on data center growth and sustainability, and companies. Should focus on whether there are signs of recovery in government server sales.

In addition, Ramsay said it would be helpful if Intel could support Advanced Micro Devices Inc.’s updated x86 product portfolio and provide a more detailed 7-nanometer product timeline and roadmap.

Of the 42 analysts covering Intel, 16 buy, 15 hold, 11 sell, with an average target price of $ 66.57, according to FactSet data.

Intel Revenue First Sees How Shortages Affect US Chipmakers in 2021

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