The latest Intel results will be another guide for the semiconductor sector.
INTC – Daily Chart
INTC shares are looking to close near recent highs around the $50 level and could offer a trading opportunity at the US Open on Friday.
Intel will report its fourth-quarter earnings after the bell on Thursday, and tech stocks will continue to rally on Wall Street’s ongoing buzz about artificial intelligence.
Intel’s announcement will come as the company seeks to promote its AI products. It follows the debut of its Core Ultra line of PC chips in December, which the company says will let consumers run AI apps directly on their laptops and desktops.
For the recent quarter, analysts expect earnings per share of $0.44 on revenue of $15.2 billion. That would be a significant improvement over the company’s performance in the same quarter last year when it reported earnings per share of $.10 on revenue of $14 billion.
The company has a market cap of $210 billion and a forward price/earnings ratio of around 26X. That is a fair price for a growth stock, but the earnings must support that.
Wall Street analysts anticipate a strong year-over-year recovery for Intel’s client computing group, which sells chips to PC makers. Analysts expect the company to report client computing revenue of $8.4 billion, up from $6.6 billion in the same quarter last year.
