Intel: At Least It's Not AMD

JoAnne Feeney, an analyst at FTN Midwest Securities, reckons that Intel regained market share in all product categories -- desktops, servers and notebooks -- in the first quarter. FTN makes a market in Intel.

Investors have bid up Intel's stock 23%, to $20.69 Monday from its 52-week low of $16.75, as the company has shown signs of getting its act back together.

The question now is when Intel's turnaround efforts will have an impact in its income statement .

First-quarter results will give investors little to smile about, and few are holding out hope of an upside surprise.

The average analyst expectation calls for Intel's first-quarter revenue to increase a scant 1% year over year to $9 billion, with EPS of 22 cents, according to Thomson Financial.

Intel has pegged its first-quarter gross margin at 49% plus or minus a couple of points. A year ago this time, Intel's gross margins were 55%.

Intel bulls are looking for the company's fortunes to accelerate in the seasonally strong second half of the year, and they will be paying close attention to any tweaks the company makes to its full-year outlook, from capital spending plans to profit-margin expectations.

"I think the company could surprise on the upside on gross margin as we go through the year, depending on health of the PC market," says PNC Advisors Vice President of Equity Research Bill Gorman.