Intel… The Day After The Beat

Intel Corporation INTC posted a stronger-than-expected second quarter results after Wednesday's market close.

Here is a look at what some of Wall Street's top analysts are saying.

MKM: ‘Moore's Law Reset'

Ian Ing commented in a note that Intel's second quarter print shows it continues to lead in manufacturing "despite stretching out Moore's law." The company is the first to embrace EUV tool adoption at 7nm and beyond which yields cost and cycle time savings. The analyst also added he is "encouraged" that the company is attempting to get back to a two-year Moore's law cadence should EUV be successful.

Ing also pointed out Intel "got a lot of help" from non-PC segments and its PC expectations were "down-ticked."

Related Link: Why Intel Could Be The 'Key' To A Tsinghua-Micron Merger

Bottom line, Intel's results were "more mixed than initially thought," as investors digest the implications of Moore's law reset and longer payoffs are likely to impact the company's fiscal 2016 results. Beyond 2016, the analyst "likes" the company's continued diversification away from PCs, helped by a "flexible" approach to future opportunities in wireless, China, and Fabless insourcing.

Shares remain Buy rated with an unchanged $40 price target.

Needham: Results And Guidance ‘Better Than Feared'

N. Quinn Bolton commented in a note that Intel's reported revenue and earnings per share of $13.2 billion and $0.55 was above his projection of $12.7 billion and $0.45, respectively. In addition, the third quarter guidance was "much stronger than feared" especially when factoring in the "overall bearish" PC-market commentary.

Bolton also noted that Intel reduced its 2015 capital expenditure guidance to $7.7 billion from $8.7billion which will benefit margins through lower depreciation expansions. In fact, the analyst increased his 2015, 2016 and 2017 estimates to reflect further margin and revenue improvements.

Bottom line, margin improvements from increasing yields at 14nm, lower capital intensity and continued strength in the company's growth business will improve investor sentiment.

Shares were upgraded to Buy from Hold with a newly established $37 price target.

Deutsche Bank: Guidance Potentially Optimistic

Ross Seymore commented in a note that while Intel delivered a "significantly better" quarter and guidance that was better than feared. However, the analyst suggested that the guidance appears "potentially optimistic" when compared to various industry and macro data points.

However, Seymore pointed out that despite risks in the guidance, shares of Intel offer a "favorable" risk to reward profile (at 12x CY16E versus S&P 12x CY16E). In addition, shares should appreciate as PC headwinds "lesson" in the bottom half of 2015 through 2016.

Shares remain Buy rated with an unchanged $37 price target.

Related Link: Intel Beat Is Good News For Apple: Chowdhry

Wedbush: ‘Very Impressed'

Betsy Van Hees commented in a note that "we were very impressed" with Intel's beat and raise print, especially when considering PC market headwinds. The "large" $1 billion cut to the company's capital expenditure was also encouraging.

Looking forward, Van Hees stated that the company's Developer Forum on August 18-20 will be a key event to "get a sense" of PC demand.

Shares remain Buy rated with a price target raised to $35 from a previous $34.