{"id":27812,"date":"2023-04-28T14:13:20","date_gmt":"2023-04-28T14:13:20","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/intel-climbs-as-wall\/"},"modified":"2023-04-28T14:13:50","modified_gmt":"2023-04-28T14:13:50","slug":"intel-climbs-as-wall","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/intel-climbs-as-wall\/","title":{"rendered":"Intel climbs as Wall St cheers early signs of recovery"},"content":{"rendered":"<p>By Aditya Soni and Eva  Mathews<\/p>\n<p>(Reuters) -Intel Corp shares rose 8% as the once-dominant chipmaker showed signs of a turnaround after ceding market share to rivals and struggling with all-time low margins.<\/p>\n<p>At least 13 brokerages raised their target price on the stock that has underperformed rivals this year. Their action followed Intel CEO Pat Gelsinger&#8217;s remarks the PC market &#8211; on which Intel built its reputation &#8211; was stabilizing after multiple quarters of decline.<\/p>\n<p>&#8220;While the future pace of the sector&#8217;s recovery is uncertain, we do believe that Intel has reached a revenue, gross margin, and profit trough through this first half of 2023,&#8221; said Benchmark analyst Cody Acree, upgrading the stock to &#8220;buy&#8221;.<\/p>\n<p>Intel on Thursday projected adjusted gross margins will climb above 40% in the second half, and said it had ramped up shipments of a key data center chip after a more than one-year-long delay had allowed rivals to take its market share.<\/p>\n<p>TD Cowen analysts said the company &#8220;was not out of the woods yet but this was a starting point.&#8221;<\/p>\n<p>Intel&#8217;s market capitalization is set to rise by nearly $11 billion to more than $130 billion, if gains hold. But a tough few years mean that its valuation widely trails that of rival Nvidia Corp and Taiwan&#8217;s TSMC, which are valued at about $672 billion and $420 billion, respectively. <\/p>\n<p>Some analysts, however, said Intel&#8217;s predicted recovery could run into hurdles.<\/p>\n<p>&#8220;We see gross margin pressured for the foreseeable future reflecting aggressive process and new product spend as well as IFS (Intel Foundry Services) investment,&#8221; Oppenheimer said.<\/p>\n<p>Intel posted its biggest quarterly loss in the first quarter as it ramped up production and investments in manufacturing plants.<\/p>\n<p>&#8220;Cash remains problematic,&#8221; said Rosenblatt Securities, adding that &#8220;capacity investments really do not solve in a monumental effort to catch up to TSMC and Samsung; as if dealing with AMD, Broadcom and Nvidia as a group were not enough.&#8221;     <\/p>\n<p> (Reporting by Eva Mathews and Aditya Soni in Bengaluru; Editing by Sriraj Kalluvila)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/intel-climbs-as-wall\/the-intel-corporation-logo-is-seen-in-davos-3\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3R0M7-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3R0M7-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Aditya Soni and Eva Mathews (Reuters) -Intel Corp shares rose 8% as the once-dominant chipmaker showed signs of a turnaround after ceding market share to rivals and struggling with all-time low margins. At least 13 brokerages raised their target price on the stock that has underperformed rivals this year. Their action followed Intel CEO [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":27935,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1220],"tags":[1223],"class_list":["post-27812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-technology","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3R0M7-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/27812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=27812"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/27812\/revisions"}],"predecessor-version":[{"id":27936,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/27812\/revisions\/27936"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/27935"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=27812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=27812"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=27812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}