What To Expect Ahead Of Intel's Analyst Day Thursday

• Intel Corporation INTC will host its Analyst Day on Thursday in Santa Clara.
• Ahead of the event, analysts at RBC Capital Markets and Summit Research shared a few thoughts and key points.
• So, let’s take a look at what these experts were saying in a day that saw Intel’s stock surge more than 1.6 percent.

Intel is having its Analyst Day on Thursday. Below are some thoughts experts shared on Tuesday.

Summit Research

Summit Research analysts Srini Sundararajan, Srini Nandury, Henry Guo and Jonathan Kees pointed out a few issues that are likely to be the focus for investors and experts alike. These are 2016 capex; the development status of 10nm and the company’s forecast for it; revenue, gross margins and segment projections for next year; and the PC market and “mobile penetration status and intentions.”

After looking into these points, the analysts decided to reiterate a Buy rating and $40 price target, as their projections in all of these fields are quite optimistic.

RBC Capital Markets

RBC analysts led by Amit Daryanani and Mitch Steves also weighed in on Intel ahead of the Analyst Day. In their opinion, focus will be:

1) Fiscal 2016 guide that they suspect “brackets expectations.”

2) Capex: RBC foresees a “material uptick ($9B+) fear is $10B+,” which is what Summit analysts model.

3) An update on further cost cuts in the mobile segment

4) “Memory – clarity around Dailian fab, JV with MU/3D NAND aspirations”

5) A look into Moore’s law and the drivers behind the 10nm delay. In addition, they expect a roadmap to 7nm to be provided.

Overall, the analysts believe investors are aligned with management’s expectations for next year and its composition. Hence, they think “the driver for the stock will be Capex plan, Memory aspirations and clarity around 10nm.”

The firm maintains a Sector Perform rating and $34 price target on the shares.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.