Shares of Intel (NASDAQ:INTC) rose nearly 3% yesterday after CEO Pat Gelsinger noted that the chip maker had crossed the mid-point of its revised third-quarter revenue guidance. During its second-quarter earnings report, Intel provided a revenue guidance range of between $12.9 and $13.9 billion for Q3. A resumption in demand for personal computer processors is helping boost its revenues.
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Other Updates Given by Gensinger
The comments from the Intel CEO came at a Deutsche Bank (NYSE:DB) technology conference held on August 31. Gelsinger also sounded optimistic about Intel’s foray into the foundry business. He added that Intel’s foundry business was poised for substantial growth owing to geopolitical tailwinds. Gelsinger did mention that Intel had received a substantial prepayment from a major customer for its 18A manufacturing capacity. Owing to this prepayment, Intel is pushing the construction of its fab plants in Arizona.
Further, the emphasis on advanced packaging capabilities could boost the foundry business drastically. Chip packaging involves manufacturing protective cases and creating connections so that the chips can be placed into the electronic device. Packaging parts are in short supply currently. To increase the output of chip packaging and the resultant final chip sales, the supply of these parts remains crucial. By focusing on this short-term challenge, Intel hopes to rope in some long-term customer loyalty, even for its wafer supply business.
Is Intel a Buy, Sell, or Hold, as per Analysts?
With six Buys, 19 Holds, and six Sell ratings, Intel stock has a Hold consensus rating on TipRanks. The average Intel price target of $36.39 implies 3.6% upside potential from current levels. INTC stock has gained 34.1% so far this year.
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