-- Intel (INTC) is likely to post a slight fiscal Q1 beat on robust server CPU demand while the PC market holds up for now, RBC Capital Markets said in a Monday research report. The company is due to report results on April 23.
RBC said it expects fiscal Q1 adjusted EPS of $0 on revenue of $12.2 billion with up to 200 basis points of upside to gross margin forecast due to healthy pricing. For Q2, RBC expects adjusted EPS of $0.09 on revenue of $13.1 billion.
Wafer supply roadblocks could limit near-term upside while PC market faces headwinds in H2 from memory chip tightness, analysts wrote.
The stock valuation reflects optimism around the company's Foundry unit, while server demand will keep benefiting from agentic AI, according to RBC.
RBC reiterated its sector perform rating on the stock and price target of $48 per share.
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