Intel Corp. has been a cause for concern among investors in recent years, but there may be some positive news ahead. Bernstein analyst Stacy Rasgon suggests that the worst may be behind them, thanks to a stabilizing PC market and efforts to unlock value. However, there are still some areas of concern that investors should keep an eye on.

One such area is data-center graphics processing units, which Rasgon notes are still weak. Additionally, there have been comments indicating weaker gross margins, which could pose challenges for Intel. Furthermore, there seems to be uncertainty surrounding positive free cash flow and the potential impact of Intel's artificial intelligence narrative.

While there has been a slight improvement in sentiment recently, Rasgon believes that there is still much work to be done. So, what should we expect from Intel's upcoming earnings report?

Key Highlights

Earnings: According to analysts tracked by FactSet, Intel is expected to earn an adjusted 22 cents per share in the third quarter, down from 59 cents per share in the same period last year.

Revenue: The FactSet consensus predicts third-quarter revenue of $13.6 billion, compared to $15.3 billion generated by Intel in the previous year.

It remains to be seen how Intel will perform in this earnings report. Investors will be watching closely as the company navigates its way through various challenges and seeks to solidify its position in the market.

Intel Exceeding Expectations in Q3

Chief Executive Pat Gelsinger recently revealed at an investor conference in late August that Intel's performance was tracking above the midpoint of its third-quarter outlook. The company had previously projected revenue between $12.9 billion and $13.9 billion.

Stock Movement

Intel shares have experienced declines after seven out of the last 10 earnings reports, although there were gains recorded in the past two reports. However, this year, the stock has seen a 23% increase, even as the Dow Jones Industrial Average (DJIA) has declined slightly.

Analyst Insights

Here is what industry analysts had to say about Intel's current situation:

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