This year, Intel is being affected by an ever-aggressive AMD, a roadmap that continues to have glitches and, most importantly, a slowdown in the PC food chain that has started to show signs of exhaustion after 14 months of robust growth.

Consumer oriented chip companies are seeing more strength now. The rest of tech is still pretty weak,

I don't think this is market share (loss) but some inflection in demand for PCs. This will worry people, Intel is the canary in the coalmine, when it sees weakness it's a warning for the rest of the sector.

The most reassuring thing is they are seeing very strong demand,

Going forward, sales guidance could still be conservative for the third quarter and on gross margins we now have a more positive number. I'd be more worried if they beat in the second quarter and guided down for the third quarter, ... But the stock is just priced to perfection right now.

Intel's gross margins tie into the chip cycle. When the cycle starts to peak, margins at Intel peak.