11:09 AM EDT, 04/24/2026 (MT Newswires) -- Intel (INTC) topped Q1 expectations as a global server chip shortage continues to drive high demand, but competitive pressures remain a long-term threat, Morgan Stanley said in a report Friday.

Intel reported $13.58 billion in revenue that "blew through"previous guidance. Its management noted the company is currently "undershipping demand"by over $1 billion, highlighting a tight supply environment for server CPUs.

Despite the beat, the investment bank maintained an equal weight rating on Intel, noting that it continues to lose market share to competitors in the critical artificial intelligence and data center sectors, according to the report.

"This situation will stay good as long as server CPUs are sold out,"Morgan Stanley said, adding that it see better risk-reward opportunities in memory markets, where constraints are expected to last longer and competitive dynamics appear more favorable, the report said.

Morgan Stanley raised its price target on Intel to $73 from $56, based on higher long-term earnings estimates, but cited skepticism about Intel's ability to "regain performance leadership"and drive durable market share gains.

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