Intel Breaks Out

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About: Intel Corporation (INTC)
by: Kwan-Chen Ma
This article is exclusive for subscribers.
Kwan-Chen Ma
Long/short equity, value, Growth, bonds
Summary

The good news in Intel’s 3Q earnings results is the surprising yet exciting datacenter growth which is viewed as the beginning of a 4-6 quarters’ uptrend.

Intel still benefits more from the total revenue increase, despite the continued loss of market share to AMD.

There is some short-term optimism to temporarily ignore Intel’s struggle to advance from 14nm to 10nm, and to 7nm eventually.

Intel’s 3Q win does not look like a game changer as the Street has not completely reflected the improved outlook in its long-term fundamental forecasts.

Using the current forward estimates, Intel’s share price looks to rise to high $60s by 2020 and low $70s by 2021.

Using Wall Street analysts’ words, Intel's (INTC) 3Q earnings results (ER) have been "reinvigorated and reaccelerated" (JPMorgan (NYSE:JPM) and Bloomberg). Benefiting from a strong server datacenter demand, Intel has delivered a