Bearish stock to watch: Intel Corporation (NASDAQ: INTC)

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Intel Corporation (NASDAQ: INTC) stock fell over 1.6% on 24th April, 2020 (as of 11:43 am GMT-4 ; Source: Google finance) despite decent results for the first quarter of FY 20. The company has exceeded their guidance by $800 million on the top-line and $0.15 on the bottom-line. In Q1, the company had generated $6.2 billion in operating cash flow and invested $3.3 billion in capex, with $2.9 billion of free cash flow, up 76% year-over-year.

INTC in the first quarter of FY 20 has reported the adjusted earnings per share of $1.45, while reported the adjusted revenue growth of 23 percent to $19.8 billion in the first quarter of FY 20. Data-centric revenue grew 34% to $10.1 billion year-on-year & represented 51% of the total revenue, which is an all-time high. Strong server demand across segments and a richer mix of the Xeon devices, had led to a significant portion of the upside. Q1 PC-centric revenue rose 14% to $9.8 billion year-on-year on the back of strong notebook PC sales and increased supply resulting from capacity additions over the past year. The company posted the operating margin of 38% in the first quarter, which is up 10 points versus last year due to higher gross margins and disciplined spending controls, consistent with the environment.

Additionally, the company returned $5.6 billion to shareholders through dividends and share repurchases.

Meanwhile, the company had acquired Habana in the fourth quarter of last year to strengthen the company’s AI portfolio and accelerate the efforts in a nascent fast-growing AI silicon market that the company anticipates it to grow to $25 billion by 2024. In the first quarter, the company has largely completed the integration. The company has consolidated product roadmap, aligned software resources and are executing to the deal thesis. The company is also now sampling Habana’s first deep learning training processor to large CSPs.

In the middle of 2020, the company plans to debut the next generation mobile processor, Tiger Lake. Using the second generation 10-nanometer process, Tiger Lake is expected to deliver breakthrough performance and the customers to have more than 50 fantastic Tiger Lake-based notebook designs lined up for the holiday season. Finally, in the latter part of 2020, the company expects the initial production shipments of the first 10-nanometer based Xeon Scalable product, Ice Lake.

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