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NEW YORK (
Intel(INTC - Get Report) investors are hoping to hear more about the company's mobile strategy when it reports first-quarter earnings after the close of trading.
Intel, the largest chipmaker, has been aggressively pushing into smartphones and tablets, as it seeks to take market share away from
ARM Holdings(ARMH), which has a 95% market share in smartphones, according to its 2011 annual report.
Intel reports first-quarter earnings today
At the 2012 Consumer Electronics Show, Intel announced it had signed deals with
Motorola Mobility(MMI - Get Report) and
Lenovo using its "Medfield" line of chips. Morningstar analyst Andy Ng noted that Intel has also signed deals with
Orange (the wireless unit of France Telecom) and
TheStreet's recap of the
2012 Consumer Electronics Show.
Jefferies analyst Mark Lipacis believes investors will also want to hear about the company's Ivy Bridge and Romley line of chips, used in mobile computing and servers, respectively. "We expect investors to focus on the ramp of Ivy Bridge (22nm platform), particularly on the mobile MPU front since the company indicated a slight delay on those products. On the server front, we believe that Intel has started to ramp its Romley platform, which should provide visibility into revenue growth and support elevated gross margins in the near term," Lipacis said in his note. He rates Intel shares "hold" with a $27 price target.
There will also be plenty of attention focused on the company's capital expenditure spending, and how that might read through for the rest of the year. Lipacis notes the company previously said it expects to spend $12.5 billion in capex this year, and any positive demand trends from Intel's report "would likely translate to positive trends for
AMD(AMD - Get Report) as well."