Patrick Moorhead, CEO and chief analyst of Moor Insights & Strategy, has expressed strong support for CEO Pat Gelsinger following Intel Corp. (NASDAQ:INTC) posting impressive third-quarter earnings. Moorhead shared his views during a segment on Market Domination Overtime.
What Happened: Moorhead emphasized that the recent earnings report should bolster investor confidence in Gelsinger's leadership during an interview with Yahoo Finance after Intel reported its earnings on Thursday.
"It gives me confidence and it should give investors confidence." The analyst highlighted that the positive results and future guidance are strong indicators of Gelsinger's effective management.
Addressing any doubts about Gelsinger's role, Moorhead questioned, "If you're questioning Pat as the leader, then who else?"
He suggested that the latest earnings announcement should dispel any uncertainties regarding Gelsinger's performance. Moorhead concluded that the third quarter's achievements and the outlook are promising signs for the company's direction.
"The biggest takeaway is solid operational performance with a solid guide," Moor Insights & Strategy founder @PatrickMoorhead says on $INTC Q3 earnings. "The Street is definitely reacting to that $260 million beat on revenue." pic.twitter.com/UX92hxsWGX
— Yahoo Finance (@YahooFinance) October 31, 2024
Why It Matters: The support for Gelsinger comes at a crucial time for Intel. In September, reports highlighted the pressure on Gelsinger to revamp Intel's AI strategy amid fierce competition from Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ:AMD).
Intel's AI chip sales, particularly the Gaudi 3, are expected to generate $500 million this year, significantly trailing Nvidia's multibillion-dollar sales.
However, the recent third-quarter results have provided a positive outlook for the company. Intel reported a quarterly revenue of $13.28 billion, surpassing the consensus estimate of $13.02 billion.
Price Action: Intel was trading 6.09% higher during pre-market hours on Friday as per Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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