Analyst Note| Abhinav Davuluri, CFA |
Intel reported decent third-quarter results, though revenue came in modestly below management’s guidance due to shipping and supply constraints that impacted multiple segments. The firm has been experiencing a renaissance in the PC market, as COVID-19 has increased PC density (PCs per household) as more people work and learn from home. Similar to its peers, Intel’s management said demand continues to outstrip supply due to headwinds related to shortages of passive components and other supply chain hurdles. We note the firm is also dealing with a resurgent AMD that is pressuring Intel’s CPU market share, Apple’s shift to internal CPUs for its Mac PCs, and the transition from general-purpose computing to accelerated computing that relies on the likes of Nvidia’s GPUs.