Intel rally continues as analysts reflect positively on server update

By Senad Karaahmetovic

Shares of Intel (NASDAQ:) are trading higher in pre-market Thursday after closing 7.6% higher yesterday, marking the biggest daily jump in 5 months.

During the investor webinar update focused on Data Center and AI strategy, the company said its new server products will come earlier than previously expected.

Here’s how Intel analysts reacted to yesterday’s update:

Barclays analysts: “INTC DCAI investor webinar seemed overly optimistic on the x86 CAGR, and we still don’t see this as a viable way to get exposure to AI, but the update on a shrink eventually coming in server (Sierra Forest on Intel 3 in 1H24) is encouraging.”

Wells Fargo analysts: “The event provided a positive overview / update on Intel’s datacenter roadmap, most notably Sierra Forest (ecore) & Granite Rapids (p-core) Xeon-SP on track for 2024 launches.”

Stifel analysts: “The update was positive with the Sierra Forest delivery window narrowed to 1H2024 and Granite Rapids on track to follow. For now, though, we wonder why it would be in the interest of customers to move workloads to INTC’s emerging ecosystem. In the near-term, we expect NVDA to continue to maintain its acceleration momentum and for AMD to continue to gain server CPU market share.”

Mizuho analysts: “While INTC reiterated a positive product roadmap with ramp of 5 nodes in 4 years, near-term we believe PC remains slow, though DC could be showing stabilization.”

Rosenblatt analysts: “Intel executed on its DCAI webcast event yesterday solidly and we must say are encouraged by a more realistic view of its data center and AI opportunities. The event was in no way comparable to Nvidia (NASDAQ:)’s GTC last week, that is another dimension of enlightenment and leadership, but Intel by just reiterating its various CPU/GPU/Accelerator roadmaps is, well, a change.”

CFRA analysts: “Despite INTC’s ambitious goals, we think meeting prior targets is becoming increasingly realistic and could help it stabilize server CPU share. Given the overly pessimistic sentiment, we think successful execution over the next two years could drive shares higher.”