Goldman delivers a candid response after Intel's stunning quarter

Intel reported gross of $16.1 billion, up 25% twelvemonth implicit year. In fact, that's the strongest gross maturation successful much than 15 years, according to CEO Lip-Bu Tan. 

Non-GAAP EPS of $0.42 came successful astir treble the Street's $0.22 estimate. Q3 guidance of $16.3 cardinal astatine the midpoint was good supra some Goldman and consensus. We had each large conception beat. Gross margins came successful astatine 41.8% versus the Street's 39.2%.

Goldman Sachs reviewed the results successful a enactment shared with maine astatine TheStreet, raising its estimates by 49% connected mean portion maintaining a Neutral standing and an unchanged $150 terms target. 

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Goldman's instrumentality was candid: a large 4th that cleared an elevated bar. But Intel's closest peers inactive connection much charismatic risk-reward.

Also Read: Intel Corporation Latest News and Stories

The 4th Goldman described arsenic "well supra the Street crossed the board"

The circumstantial bushed magnitudes successful the Goldman enactment are worthy laying out, according to the probe shared.

• Revenue of $16.1 cardinal was supra Goldman's ain estimation of $14.3 cardinal and the Street's $14.4 billion. 

• Gross borderline of 41.8% was supra Goldman's 39.3% and the Street's 39.2%.

• Non-GAAP operating EPS of $0.42 was astir treble Goldman's $0.23 estimation and the Street's $0.22.

The Data Center and AI conception was the header driver. DCAI gross of $6.3 cardinal grew 24% 4th implicit 4th and 59% twelvemonth implicit year, driven by general-purpose server request and agentic AI, according to Goldman's note. 

Intel sees an accelerating server CPU marketplace with a beardown double-digit CAGR done astatine slightest 2028. The institution is presently moving successful a capableness shortage position, and expects stronger sequential DCA maturation successful Q4 arsenic further proviso comes online.

Related: Alphabet and Intel could reset the AI trade

Client computing gross reached $8.9 billion, supra some Goldman and Street estimates. Intel Foundry gross of $5.8 cardinal was besides supra statement astatine $5.5 billion.

"Our Q2 results correspond our strongest gross maturation successful much than 15 years," Tan said successful the net release.