Intel CEO on the company's Q3 results: We've underinvested in the past

Intel CEO Pat Gelsinger joins "TechCheck" to discuss the company's quarter and his plans to turn the business around. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Intel’s post-earnings slump has market analysts questioning the company’s near-term prospects.

Intel reported Thursday weaker-than-expected third-quarter sales results, with the stock falling more than 10% on Friday to around $50 a share. The company blamed supply shortages for a slowdown in its PC business.

While some say Intel squandered a chance to prove itself, others see hope on the horizon.

Here’s what five market analysts told CNBC on Thursday following the report:

Hightower chief investment strategist Stephanie Link decided not to wait it out in the stock:

“This is one of the reasons why I sold it, because they’ve been very inconsistent and they’re lowering guidance. At least I can say at IBM, they didn’t lower guidance. So they’re lowering guidance. Probably a lot has to do with the shortages. But what’s the most important number to look for is the capex number. ... Are they going to up that number as they build out their foundry business? The foundry business is going to take years to really complete, it’s just what they’re willing to spend to get to that point. I think it’s the right decision, but in the meantime, I think the earnings and revenues kind of tread water.”

Bernstein senior research analyst Stacy Rasgon wasn’t impressed by Intel’s results:

“This does not look like a good trend. The quarter itself was OK. Revenues were kind of in line. Margins were decent. But if you look under the surface, it’s not great. PCs collapsed, especially notebooks. They actually missed on data center, which is sort of incredible when we’re supposed to be sort of in the midst of a new product cycle. Data center margins are still lousy. The guide obviously was quite weak, especially on the bottom line, very low.”

Seymour Asset Management founder Tim Seymour said the negative sentiment could help jumpstart Intel’s turnaround:

“I think people think that Intel has so much still to prove — to invest in their foundry business, to be the global player in the strategic dynamic, on the equipment spend and ultimately where their interface is. It was going to be a two or three-year process. In that sense, you could say give them some time. But we want to hear about the capex spend. We want to hear about the commitment here to the foundry business that puts them in a position at some point to take the control of pricing for the sector away from Taiwan Semi, etcetera. But look, disappointing on the guide doesn’t really change where the stock sits and why it trades at the multiple it does, which is significantly cheaper to Taiwan Semi and other comparable players in the space and that’s because we’ve digested this story before. Data center group growing 10%? Not good enough. And really, two quarters ago, that was what knocked this stock out of bed.”

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