Intel Set to Report Decent Q2 on Server CPU Strength, RBC Says

MT Newswires Live07-22 00:23

Intel (INTC) is expected to report a decent Q2 supported by server central processing unit, or CPU, demand and pricing momentum, RBC Capital Markets said in a note emailed Tuesday.

The company is scheduled to report Q2 results on Thursday.

The analysts said the company's core business trends remain healthy, with server CPU volumes expected to grow at a double-digit pace throughout the year, supported by favorable product mix and pricing trends.

The analysts expect Intel to report $14.3 billion in revenue and $0.20 in non-GAAP earnings per share, with a potential about 5% revenue beat driven by strong server CPU demand. RBC also sees about 200 basis points of upside to its 39% gross margin estimate.

For Q3, the analysts expect the company's outlook to come in 3% to 5% above consensus revenue and EPS estimates. Gross margin guidance could also be one to two points above consensus. They added that they remain uncertain whether Intel will raise its 2026 capital expenditure outlook, but see upside risk to its 2027 capex estimate of $17 billion.

RBC maintained its sector perform rating and $80 price target on Intel.

Price: 104.45, Change: +7.39, Percent Change: +7.61

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