Intel Corporation (INTC) Gives A Rosy Outlook. Will It Achieve It?Author: Aman JainLast Updated: March 12, 2020Intel Corporation along with its 2Q earnings late Wednesday, painted more of a rosy outlook for the rest of year with an assurance to cut more costs ahead. A rosy outlook may have got a thumbs up from investors for now, but hitting those numbers will require considerable effort from the chip maker. For the 2Q, the chip maker posted a surprise beat.Investors must be cautiousFor the 3Q, the chip maker guided a revenue of $14.3bn, which is 2% more than the consensus estimates. Also, the firm, for the second time this year, slashed its planned Capex by $1bn, lowering its target by 23% from the initial goal.The upbeat outlook did push Intel’s stock in after-hours trading, but year to date the stock is down 18% owing to the fears concerning the weak PC sales, which still drives the majority of Intel’s revenue.Despite the rosy guidance, investors must be cautious with Intel’ stock as in reality the firm has lowered its full-year guidance. Intel now expects its revenue to decline by 1% versus a flat guidance earlier. And, still to meet the new target, revenue for the second half would have to rise by around 13% compared to the first half. Such a jump has not been seen in the past five years.Will Windows 10 rescue Intel?Intel is hoping Windows 10, which is due later this month, to push its PC business. During the earnings call, Intel CEO Brian Krzanich said, “combined with products like Skylake over the long haul, I think Windows 10 will be a boost to the PC market.”For the 2Q, Intel posted EPS of 55 cents with revenues of $13.2bn while Wall Street expected 50 cents on revenues of $13.04bn. For the quarter, net income came in at $2.71bn versus $2.8bn last year. Revenue for the chip maker was down 5% year over year while analysts were expecting a 6% decline.Growth in the data centers and “Internet of Things” helped Intel to offset the weakness in the PCs. Revenue for the DCG came in at $3.9bn up 5% sequentially, and 10% from last year. More than 70% of the firms operating profit came from DCG, memory and IoT businesses, this helped Intel to beat the earnings.Intel CEO said the 2Q numbers suggest the “transformation of our business as growth in data center, memory and IoT.”In after-hours trading on Wednesday, Intel shares closed up 1.38% at $29.69.