Wedbush: Intel's stellar earnings report may not necessarily drive the stock price higher

Glonghui July 21 | Wedbush analyst Matt Bryson stated in a client research report that Intel's revenue and profit margins are expected to significantly exceed market expectations, with this trend likely to continue in the third quarter. He maintains a Neutral rating on Intel, with a target price of $95. This target price is roughly in line with Intel's current share price prior to the earnings release, indicating that even with potentially better-than-expected results, Wedbush believes the stock's upside is limited. Bryson pointed out that the performance of TSMC is the reason for his caution. Last week, TSMC reported record profits and raised its full-year guidance, but its stock price still declined; after a prolonged surge over the past year, the sector's valuation is already at a high level, and investors are choosing to lock in profits. Bryson wrote: Even if results far exceed expectations and sales return to a growth trajectory, it is still difficult to prevent the overall semiconductor sector from facing a sell-off.