Intel Corporation (INTC): No Signs of Being on the Right Track

Everyone knows that Intel Corporation (NASDAQ:INTC) is struggling in the mobile chip market, but when analysts say that it’s faltering in other areas too, it’s time to get cautious. The trouble at Intel Corporation (NASDAQ:INTC) is not visible to many Wall Street analysts, except perhaps Doug Freedman, Chip Analyst at RBC Capital Markets. According to a blog post on Barron’s, Freedman, as part of what he calls his ‘Silicon Valley Bus Tour’, recently had a meeting with Mark Heninger, Director of Investor Relations at Intel Corporation (NASDAQ:INTC) and it seems he came unimpressed. Freedman filed a note to his clients regarding Intel Corporation (NASDAQ:INTC) after returning,

Freedman has had earlier meetings with Intel Corporation (NASDAQ:INTC)’s management and this one was no different as he couldn’t find anything exciting that Intel Corporation (NASDAQ:INTC) was upto, which will change the company’s fortune in the next three to five years. According to the analyst, Intel Corporation (NASDAQ:INTC) is still in, what he calls ‘thesis’ test mode, which it is trying to find drivers that will provide growth for PC and Data centers in the future.

“We encourage an Intel produced analysis showing average “big s” startup GM impacts from 1st-wafer output quarters to full production ramp quarters over the last 7 tick-cycles. On a more positive note, we like news that die sizes continue to shrink well with yields improving (Broadwell yield caught up close to Haswell yields at same point in life cycle), as a result we see the potential for increased SRAM integration,” Freedman was quoted as writing in his note.

Freedman mentioned that Intel Corporation (NASDAQ:INTC) is attributing the recent surge in PC demand to the aging of the PCs that are deployed in corporations. He reveals that there are 60 millions such PCs which are older than at least four years.

Freedman highlighted that Intel Corporation (NASDAQ:INTC) is having a tough time figuring out the rate of growth of server chips sales into enterprise data centers.

Disclosure: None