Deutsche Bank analyst Ross Seymore notes that Intel's new leadership team is resetting the company's growth trajectory, but also is also showing spending restraint, something Wall Street may like down the line. The company also lowered its full-year capital spending plan. It now expects to spend $11 billion, plus or minus $500 million, down from a previous view of $12 billion.
"While this [revenue] guide is mildly disappointing, we believe the [company] has now set the bar realistically and importantly shown continued signs of cost control by trimming capex/opex (- $1b/-$200m)," Seymore wrote in the note. "Consequently, we believe the [company's] transition into faster growing mkts (ultra-mobile, foundry etc.) will require patience, but expect the shares to slowly rise as signs of success emerge in 2H13 (tablets, convertibles etc.) and become more meaningful in 2014 (LTE handsets)." He rates Intel shares "buy" with a $26 price target.