By Chris Katje

Analysts are diving into the second quarter financial results reported by Intel Corporation (NASDAQ: INTC) Thursday after market close.

Here are the key takeaways from the second quarter and the future of Intel.

Bernstein analyst Stacy Rasgon had a Market Perform rating and raised the price target from $32 to $34.

KeyBanc Capital Markets analyst John Vinh had a Sector Weight rating and no price target on shares.

Rosenblatt analyst Hans Mosesmann had a Sell rating and a price target of $17.

Needham analyst Quinn Bolton had a Buy rating and raised the price target from $36 to $40.

Intel’s second-quarter results were “quite strong,” according to Bernstein’s Rasgon.

“Q3 guidance was also above though growth is coming mostly from client as the channel approaches normal in the 2H,” Rasgon said.

Rasgon said the datacenter results were “objectively bad” with continued headwinds.

The analyst said the numbers for several segments are moving in the right direction.

“Intel’s problems have broken through to the forefront. But at this point, near-term fundamentals may have troughed.”

The analyst said server demand is weak for the company and inventory digestion could continue in the second half for Intel. WANG DONGMING/GETTY IMAGES 

KeyBanc’s Vinh called the results from intel solid and noted that PC inventories have normalized.

“We’re encouraged by these results but await further proof points of share stabilization in servers and progress on IFS,” Vinh said.

The analyst said server demand is weak for the company and inventory digestion could continue in the second half for Intel.

“AI contribution remains modest, as pipeline increases to over $1B.”

Despite a second-quarter beat from Intel, Rosenblatt’s Mosesmann reiterated a Sell rating and saw weakness across several sectors for the semiconductor company.

“Overall, a solid recovery quarter for Intel with mixed implications for the shares — PC cycle bottoming and uncertain data center trajectory. Intel is focused on AI, with most of its roadmap now AI-tagged in some form,” Mosesmann said.

The analyst said Intel has a $1 billion business pipeline for artificial intelligence.

“We don’t see AI as an investable theme for Intel shares currently.”

Mosesmann said Intel is “slowly” delivering on its longer-term goals.

The second quarter and guidance from Intel was “largely positive,” according to Needham’s Bolton.

“Intel delivered a recently elusive beat and raise, outperforming on all line items,” Bolton said.

The analyst said Intel has been gaining market share back in the PC segment.

“INTC looks to be a strong beneficiary for the next upcycle and management argues the company’s new ‘AI PC’ will be the catalyst.”

Bolton said the data center was an area of weakness in the second quarter and could continue to put pressure on Intel.

“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.”

INTC Price Action: Intel shares are up 4.86% to $36.24 on Friday versus a 52-week trading range of $24.59 to $40.42.

Read Next: Intel Discloses $32.7B Investment In Germany, Projects Creation Of More Than 10,000 Jobs 

Photo: Weldon Kirsch, Courtesy Intel

Latest Ratings for INTC






Mar 2022

Morgan Stanley




Feb 2022

Raymond James



Market Perform

Feb 2022

BMO Capital


Market Perform

Produced in association with Benzinga

Edited by and