INTC announced it’s 1Q earnings results. The quarter beat expectations on both a revenue and eps level. The street was looking for revenues of $9.7 billion and came in at $10.3 billion. Earnings consensus was $.38 and posted $.43. In addition, gross margins for the quarter were better than expected. at 64% versus 61%. The triple whammy for INTC! We are even more excited about the prospects for this stock as the quarter revealed the beginnings of a cyclical recovery in demand for corporate servers. Prior demand for INTC was mostly driven by consumer electronics. The company has guided annual eps up and we are increasing our target on this company to $31 or 16.5x 2010e of $1.90.