“We believe Intel will follow through with its plan to aggressively protect its DCG share from Advanced Micro Devices ( AMD) while regaining its technological leadership with 7nm,” observed Bolton.īolton sees Intel’s gross margin continuing to be affected in the near term by its consistent investments in CPU design and process technology.

Notably, Intel intends to produce most of its 7nm products internally by 2023, which is expected to be an advantage for the company in terms of economies of scale and market share gain in the Data Center Group (DCG) segment. “With new CEO Pat Gelsinger coming onboard, we believe Intel will be able to identify weaknesses in its processor roadmap and re-establish its processor performance leadership,” said Bolton. One of the things that Bolton is hopeful about is the leadership qualities of Intel’s new CEO, Pat Gelsinger, who came into the office early in 2021. Granted, Bolton expects the debacle to continue in Q3 as well however, it is the long-term view and the fundamental strength of Intel that is keeping the analyst bullish. Among a few things to celebrate in the Q2 results was the surge in Mobileye revenues, supported by higher uptake of advanced driver assistance systems (ADAS). Last week, the world’s largest semiconductor company delivered what seems to be its “worst performing quarter for many years to come,” giving investors a great window of opportunity to accumulate INTC shares. Nonetheless, having faith in the phrase ‘max pain means BUY,’ Needham analyst Quinn Bolton decided to reinforce a Buy rating on the stock with a price target of $40.

The disaster streak of the semiconductor industry continued with the disappointing Q2 results of Intel ( INTC), garnished with dismal full-year guidance.

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