INTC - Embedded Expectations Analysis - 2020 09 21
Intel Corporation (INTC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 13.2x Uniform P/E, implying bearish expectations for the firm. Additionally, management may be concerned about their revenues, chip production, and product developmentSpecifically, management may lack confidence in their ability to return to normal PC inventory levels, meet their margin outlook, and sustain record high cloud and Non-Volatile Memory Solutions Group (NSG) revenues. They may also have concerns about their ability to reduce Programmable Solutions Group (PSG) unit cost and cloud expenditures, the impact of production timing delays on their business, and the sustainability of Tiger Lake's performance in CPU. Furthermore, they may lack confidence in their ability to grow their business, produce and deliver a strong lineup of leadership products for their customers, and successfully execute production plans in FY 2021 and FY 2022. They may also lack confidence in their ability to maintain operating income growth as a result of improved unit costs. Finally, they may have concerns about their partners' productivity issues due to the pandemic, the potential of their third-gen Intel Xeon Scalable processors, and their ability to sustain a rich server mix
Intel is a data-centric company. The company's operating segments are: Data Center Group, which develops platforms for compute, storage, and network functions; Internet of Things Group, which facilitates its customers creating, storing, and processing data; Mobileye, which provides assistance and automation solutions; Non-Volatile Memory Solutions Group, which provides memory and storage products based on Intel? Optane? technology and Intel? 3D NAND technology; Programmable Solutions Group, which provides programmable semiconductors; and Client Computing Group, which connects people to data, allowing each person to focus, create, and engage in ways that unlock their individual potential.
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