Intel: The road ahead

Intel is due to release quarterly earnings later this week. It is likely that due to falling PC shipments the overall revenue falls and has an impact on how the market sees the stock.

Based on Trefis analysis, Intel's current valuation is based on the following revenue components.

We can see that Server, Notebook and Desktop are nearly neck to neck. While server volumes seem to be going up slightly each year, it is unlikely that notebook and desktop replacements will provide the growth that is needed.

The current consensus is that EPS would come in at 2.12 which at Price to Earnings at 12.5 would translate to a target price of 26.5. An EPS of 2.5 or higher could only justify the current price.

This would become clear on Wednesday.