Intel (INTC) is scheduled to report results of its fiscal fourth quarter after the market close on January 25, with a conference call scheduled for 5:00 pm ET. What to watch for:
GUIDANCE: Along with its last report, Intel guided for Q4 adjusted earnings per share of 44c on revenue of $14.6B-$15.6B. At the time, analysts were expecting the company to report Q4 EPS of 30c on revenue of $13.53B, but those figures have since risen to 45c and $15.16B, respectively.
CANTOR INITIATION: Earlier this week, Cantor Fitzgerald initiated coverage of Intel with a Neutral rating and $50 price target. The firm, which recommends investors remain Overweight semiconductor stocks as a group, views Intel among the potential relative underperformers in 2024 given the potential for PC seasonality below consensus, the negative impact from Mobileye's (MBLY) miss and "messiness" around IFS disclosures, the analyst tells investors.
PRICE TARGET CHANGES: A number of firms raised their price targets on Intel earlier this month, with Citi increasing the target to $47.50 from $34. The analyst believes Intel continues to execute on its manufacturing roadmap and says more importantly, TSMC (TSM) is not. Barclays analyst Tom O'Malley also boosted his target to $44 from $32, while Susquehanna upped its target to $42 from $38, saying it expects results to be generally in-line but lighter on guidance. The firm also expects in-line margins in 4Q, but trending lower with seasonality in 1Q. Additionally, TD Cowen raised the firm's price target on Intel to $45 from $38, saying it expects a bit of upside to 4Q23 driven by Client and modestly better DCAI sales. However, into 1Q24, they lowered estimates given a sizable guide-down at Mobileye and server seasonality. All four firms maintained Neutral-equivalent ratings on the stock.
SUPPLY CHAIN: In late December, the U.S. Department of Commerce announced it will launch a new survey in January 2024 that will serve as a foundation for continued analysis of the capabilities and challenges of the broader U.S. semiconductor supply chain and national defense industrial base. The intent of the survey is to identify how U.S. companies are sourcing current-generation and mature-node semiconductors, also known as legacy chips. This analysis will inform U.S. policy to bolster the semiconductor supply chain, promote a level playing field for legacy chip production, and reduce national security risks posed by the People's Republic of China PRC ."Legacy chips are essential to supporting critical U.S. industries, like telecommunications, automotive and the defense industrial base. Addressing non-market actions by foreign governments that threaten the U.S. legacy chip supply chain is a matter of national security," said Secretary Gina Raimondo. "Over the last few years, we've seen potential signs of concerning practices from the PRC to expand their firms' legacy chip production and make it harder for U.S. companies to compete. To get ahead of these concerns, the Department of Commerce is taking proactive measures to assess the U.S. semiconductor supply chain by collecting data from U.S. companies on the sourcing of their legacy chips. Government alone cannot create and sustain a robust supply chain - we need industry at the table."
Intel
+0.36 (+0.73%)
Mobileye
+0.31 (+1.12%)
TSMC
+0.85 (+0.73%)