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.