Intel Rides on Strength in Client Computing Group: Will it Persist?

Intel Corporation INTC is witnessing solid traction in the Client Computing Group. In the third quarter, the company reported a revenue of $8.53 billion from this segment, up from $8.16 billion in the year-ago quarter. The figure beat our estimate of $8.19 billion.The 8% uptick was driven by a rebounding PC market after the decline in the post-COVID years. Enterprises across industries are upgrading their PCs to Windows 11 to match the evolving requirements. Growing adoption of AI PCs is another major growth driver. Recently, Arizona State University has opted to deploy an Intel-powered AI PC fleet to optimize operations and improve the performance of the university football team. The company remains firmly on track to ship more than 100 million by 2025.The CCG segment has extended its collaboration with Microsoft. Intel has integrated the Intel vPro manageability with Microsoft Intune, a cloud-based unified endpoint management solution that allows the IT team to manage, access and protect apps and devices. This allows businesses of all sizes to remotely and securely manage the cloud-connected PC fleets. In simple terms, remote management capabilities empower IT teams to repair computer fleets through the familiar Microsoft platform. In a modern decentralized workspace, this integration bridges the gap between physical hardware systems and cloud-connected tools. Moreover, the growing demand for Lunar Lake and Arrow Lake and the introduction of Panther Lake are expected to drive growth in the upcoming quarters.How Are Competitors Faring?Intel faces competition from Advanced Micro Devices AMD and Qualcomm Incorporated QCOM. AMD reported $4 billion in revenues in the third quarter, up 73% year over year. The growth was driven by healthy demand for AMD Ryzen processors, higher semi-custom revenue and strong demand for Radeon gaming GPUs.Qualcomm’s ARM-based AI PCs, Snapdragon X Elite/X2 Elite processors, are also gaining traction. The growing demand for ARM-based chips can challenge Intel’s dominance in the PC market. Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $8.99 billion, up from $8.07 billion a year ago.INTC’s Price Performance, Valuation and EstimatesIntel has gained 55.6% over the past year compared with the industry’s growth of 30.7%.Image Source: Zacks Investment ResearchGoing by the price/book ratio, the company's shares currently trade at 1.38 book value, lower than 31.73 of the industry average.Image Source: Zacks Investment ResearchEarnings estimates for Intel for 2025 have increased, while those for 2026 have declined over the past 60 days.Image Source: Zacks Investment ResearchZacks Investment Research Intel stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks