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Intel
(INTC) crushed earnings and raised expectations in a difficult environment for semiconductors, but that was not enough for some Wall Street analysts to turn against the chip maker.
On Thursday, Intel posted third quarter adjusted earnings per share of $ 1.40 against a consensus of $ 1.15 on Wall Street. It also posted a strong EPS forecast of $ 1.22 for the fourth quarter, compared to an average estimate of $ 1.09.
Earlier in the week, both
Texas Instruments
(TXN) and Advanced Micro Devices (AMD) provided financial forecasts below consensus expectations.
Intel's stock rose 3.5% Friday to $ 45.86 after the report.
Cowen analyst Matthew Ramsay reiterated its note on Market Perform for Intel stocks, saying the company's long-term issues were still in the news.
Intel reported "stellar results, but many concerns remain," Ramsay wrote Friday. "We expect a precarious configuration in 2019 due to complex difficulties, macroeconomic difficulties, manufacturing problems and renewed competition from AMD."
Ramsay has raised its target price of Intel shares from 50 to 49 USD.
Intel has suffered repeated delays in its move to 10-nanometer chip manufacturing technology compared to its main rival AMD, which is expected to produce 7-nm server chips next year. On Thursday, Intel confirmed that it is on track to produce 10nm chips in the second half of next year.
One nanometer equals one billionth of a meter. Smaller nanoscale chip manufacturing technologies have always allowed companies to create faster, more efficient chips.
Bank of America Merrill Lynch analyst Vivek Arya reaffirmed Thursday its neutral stance towards Intel, also providing for a more challenging growth environment for the chip maker in 2019. He mentioned risks such as slowing demand in emerging markets and a possible slowdown in the growth rate of sales. cloud editors.
Arya lowered its Intel stock price target to $ 52 instead of $ 56.
Write to Tae Kim at [email protected]
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