-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
INTC posted Q1 revenue of $13.6B (+7% Y/Y), beating our $12.4B estimate, driven by Data Center segment growth of 22% to $5.1B (vs. our $4.4B view) on strong Xeon demand for AI infrastructure. Non-GAAP gross margin expanded to 41.0% (+180 bps), well ahead of the 34.5% consensus, on higher volumes and improved utilization. We are encouraged by strengthening manufacturing execution as INTC focuses on maximizing factory efficiencies after previous supply constraints. Q2 guidance of $14.3B revenue midpoint and $0.20 EPS is well above consensus at $13.1B and $0.08. Intel 18A achieved milestones with the Core Ultra Series 3 launch, the first AI PC platform built on 18A and manufactured in the U.S., securing partnerships with Elon Musk for foundry services. We believe INTC is well positioned to benefit from growing CPU roles in AI inference applications, with significant server content growth expected in the coming years. We also see a potential line of sight to over 50% gross margins by year-end 2027.