Ge Long Hui·2026-01-15 08:03Core Viewpoint - UBS expects Intel's Q4 performance to rise due to strong demand in personal computers and servers, with market expectations for the company's guidance for the fiscal quarter ending March being reasonable [1] Group 1: Financial Outlook - UBS forecasts a mixed but gradually improving outlook for Intel this year, as the current fiscal quarter is expected to be the most challenging period for capacity issues [1] - The firm predicts that memory price increases will suppress some positive momentum in the short-term personal computer market [1] - UBS raised Intel's target price from $40 to $49 while maintaining a "Neutral" rating [1] Group 2: Key Financial Metrics - During the earnings release, Intel is expected to discuss gross margins, which are anticipated to fall below the 40% to 60% range, with UBS predicting an annual gross margin of approximately 38% [1] - Total and net capital expenditures are forecasted to be around $19 billion and $12 billion, respectively, both showing slight increases [1] - Operating expenses are expected to align with previous guidance at $16 billion [1] Group 3: Wafer Foundry Business - A critical narrative surrounds the wafer foundry business, which UBS believes is gradually improving [1] - There are potential discussions with multiple clients regarding collaboration on 14nm process technology, including Nvidia in gaming, as well as Google, Broadcom, and Apple as potential customers [1]