KeyBanc outlook for financial report season: Intel Corporation (INTC.US) and AMD (AMD.US) receive support, the simulation chip cycle continues to improve

KeyBanc Capital Markets released a research report on the eve of the financial reporting season, pointing out that the analog chip sector is expected to deliver strong results, mainly due to the continuation of a positive industry cycle. The team led by analyst John Vinh stated that AI demand remains strong, traditional data centers are experiencing a surge in demand driven by agentic workloads, and the supply side is also improving. The Vinh team stated, "The performance of analog chips is promising, the positive cyclical trend remains unchanged, benefited by improved order visibility, extended delivery times, robust industrial and data center demand, and widespread price increases." Regarding Intel Corporation (INTC.US) and Advanced Micro Devices (AMD.US), the analyst emphasized that server CPU oversupply demand and supply improvements will support Intel Corporation's 2026 shipment volume to achieve a year-on-year growth of 25% to 30%, while AMD is expected to grow by 15% to 20%; both companies are expected to see server CPU shipment growth rates exceeding 50% in 2027. Intel Corporation is scheduled to release its second-quarter financial results on July 23, while AMD will announce its second-quarter 2026 performance for the fiscal year on August 4. Regarding Monolithic Power Systems, Inc., the Vinh team stated, "The pricing advantage, enterprise data center business, and early volume ramp-up of the Vera Rubin platform (expected market share of 60%-70%) are expected to bring near-term performance exceeding expectations." For Intel Corporation (referring to its mobile business), the analyst stated that although the smartphone market continues to deteriorate, early orders for Chinese smartphone application processors (AP) and iPhone 18 modems exceeding expectations (actual 50%, previously guided only 20%) may support its performance better than market pessimistic expectations. Regarding Qorvo (QRVO.US), Skyworks Solutions, Inc. (SWKS.US), and Cirrus Logic, Inc. (CRUS.US), the Vinh team stated, "Apple Inc.'s inventory reduction may suppress short-term performance outlook, but market expectations have already reflected lower demand levels for CRUS/QRVO/SWKS below seasonal levels."