Intel's results for the second quarter were higher than anticipated, surpassing both revenue and profits estimates. Although the results were considered positive, some analysts highlighted their uncertainties concerning the company's execution going forward, as well as a possible decrease in corporate expenditure toward Intel due to the focus on GPU-centric Artificial Intelligence investments, which could predominantly benefit AMD and Nvidia.
Intel's second quarter figures released on Thursday surpassed analyst and investor expectations. This came as a relief, as Intel had experienced difficulty with inventory and transitioning to higher A.I. and GPU usage in corporate purchases. On Friday, the company's stock rose by around 5%.
Analysts responded favorably to the results, which were driven by PC sales and were somewhat offset by the company's need to handle market and structural problems. Christopher Danely of Citi even maintained a neutral rating and increased his price target from $32 to $34. Deutsche Bank also held a Hold rating, although their target price increased from $32 to $38. JPMorgan kept an Underweight rating, but their target price rose from $30 to $35.
CEO Pat Gelsinger commented on the call to analysts that Intel still anticipates weakness in all business segments up until the conclusion of the year, and that server chip sales won't revive until the fourth quarter. Gelsinger also stated that cloud companies are preferring GPU's for A.I. instead of Intel's central processors.
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