April 22 - Intel (INTC, Financial) is expected to post a short-term revenue bump in its first-quarter earnings, helped by customers stockpiling chips ahead of anticipated U.S. tariffs, according to analysts. The chipmaker's performance may appear stronger than underlying demand suggests, as buyers pull forward orders to avoid future trade penalties.
Industry data points to a nearly 5% rise in recent PC shipments, largely driven by pre-tariff stockpiling rather than sustainable market demand. Despite this, revenue from Intel's core client computing group is still forecast to fall around 9% year over year, underscoring continued structural pressures in its main business line.
The server segment remains a pain point, with competition from Advanced Micro Devices (AMD, Financial) eating into Intel's share. Analysts expect server chip sales to stay weak in Q1, prolonging margin pressure for the company.
Looking ahead, analysts warn that the artificial demand surge may leave Intel navigating a sharp slowdown in the second quarter. Inventory build-up across the supply chain could weigh on future orders, raising the risk of sequential revenue declines as customer buying normalizes.
