Here's Why Intel Stock Is a Buy Before Earnings

Intel's (NASDAQ: INTC) stock has had a fantastic year, but it is still below its all-time highs. While Intel has been seen as a loser in the artificial intelligence (AI) era and a technology laggard, both perceptions may soon flip to the positive after its upcoming earnings report.On its fourth-quarter earnings release, Intel gave lackluster first-quarter guidance, sending shares down from their highs. However, management explained that the lower Q1 revenue is due to Intel converting some of its production lines from client CPUs to server CPUs. Since it can take months to produce an advanced chip, Intel had to first finish ongoing client CPU production, then begin production of the new server chips, leading to a months-long supply "hole."However, those server chips should have just begun coming out of Intel's fabs at the end of March. Thus, second-quarter guidance should indicate much stronger revenue and profits than the first quarter, as the new supply is sold.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool