Launch of INTC's MP Server Chip and Next-Generation CPUs on Schedule

Analysts at FTN Equity Capital Markets Corp reiterated their "buy" rating on Intel (NASDAQ: INTC).

FTN Equity Capital Markets expects INTC's Clarkdale (desktops/workstations) and Arrandale notebooks to be launched in early 2010. FTN Equity Capital Markets anticipates a quick ramp up of these products. FTN Equity Capital Markets' contacts have indicated that the launch of INTC's Nehalem-EX (MP server chip) and next-generation 32nm 6-core CPUs would be on schedule in 4Q09 and 1Q10, respectively. According to FTN Equity Capital Markets, these products will act as a catalyst for INTC's margin expansion.

With most server CPU prices remaining relatively flat, FTN Equity Capital Markets continues to expect Intel's ASPs to remain stable going forward. New products, higher utilization and lower-cost manufacturing are likely to contribute towards expansion in INTC's gross margins, FTN Equity Capital Markets said. INTC has the potential for delivering higher-than-sector-average earnings growth and attractive cash dividend, FTN Equity Capital Markets believes.