Baird analyst, Tristan Gerra, reiterates an Outperform rating on Intel Corporation (NASDAQ:INTC) following the company’s 2Q earnings report.

According to the analyst, INTC reported EPS of $0.27, in line with consensus estimates. In addition, revenue of $13.5 billion remained in line with the midpoint guidance of $13.0 -$14.0 billion.

Gerra comments, “Initial traction in the high-volume smartphone segment could improve Intel’s foundry positioning longer term, in our view. 5G SoC efforts are ongoing despite the 4G SoFIA investments wind down. We see little risk of market share erosion in Intel’s data center business in the medium term.”

Tristan Gerra is ranked #667 of 4,073 analysts on TipRanks and maintains a success rate of 59% with an average return of 7.2%.