Intel: Better Lucky Than Good
Intel beat the Q3 revenue estimates due to luck from sales pulled forward and the immaterial nature of a competitor's ramp so far.
Analysts are only forecasting the chip giant grows revenues in the 1% range while market share losses to AMD and Qualcomm will make this minimal target difficult.
The stock trades at 12.3x forward EPS estimates while investors should expect estimate cuts.
Intel (INTC) has failed repeatedly over the last couple of years, yet the chip giant managed to crush analyst estimates in Q3. The company continues to prove it is better to be lucky than good as a prime competitor isn't able to ramp up supply of new chips fast enough to take meaningful market share in the near term. My investment thesis remains negative on the stock at the yearly highs despite the big quarterly beat.
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