AMD Bear Reiterates Upbeat View on Rival Intel


Susquehanna analyst Christopher Rolland, who has a sell rating on Advanced Micro Devices (NASDAQ:AMD), is out today with a bullish note on shares of Intel (NASDAQ:INTC), following the chip giant’s beat-and-raise first-quarter earnings report. Rolland reiterated a Buy rating on INTC, while lifting the price target from $62 to $64, which implies an upside of 21% from current levels.

Rolland opined, “DCG was the star of the show, posting accelerating growth, driven by Cloud and Comms Service Provider. While our most recent Asia checks pointed to significant DCG upside, results/guidance exceeded even our lofty expectations as Data Centric revenue is now approaching 50% of total revenue. The surprise of the print was PC strength, which exceeded our expectations by more than $500 million, in part driven by better ASPs from commercial and enthusiast/gamer systems. Also contributing was upside in both IoT and Memory (which exceeded $1 billion quarterly for the first time).”

“Collectively, this beat drove management to increase year-end guidance by $2.5 billion, a non-typical decision for Intel this early in the year. While bears may point to a guided drop in GMs in 2Q18, we think management may have sandbagged, a move that may allow for EPS revisions in future quarters, giving the company an outside shot of earning $4 this year. Bears may also point to the extra $500 million in capex guidance, although we note this is not an unusual raise given the raised top-line guidance. And… the lowered tax guidance was the cherry on top. We are raising our 2018 estimate from $3.60 to $3.85,” the analyst continued.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Rolland has a yearly average return of 9.4% and a 62.2% success rate. Rolland has a 17.7% average return when recommending INTC, and is ranked #432 out of 4778 analysts.

Out of the 37 analysts polled in the past 12 months, 23 rate Intel stock a Buy, 12 rate the stock a Hold and 2 recommend a Sell. With a return potential of 6%, the stock’s consensus target price stands at $56.10.

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