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Intel’s blockbuster results lift shares of dot-com peak, which is the fire sector

(Reuters) – Intel Corp’s (INTC.(O) shares hit their highest in nearly two decades, on Friday after the cloud-computing, the demand is fired up, the chipmaker’s data center business, and the concerns of losing market share to rival AMD, the elimination of the stocks in the sector as a whole.

FILE PHOTO: a Computer chip manufacturer, Intel’s logo will be displayed on a gaming computer’s display on the opening day of E3, the annual video games expo, reveal of the latest gaming software and hardware in Los Angeles, California, USA, 11 June, 2019 at the latest. REUTERS/Mike Blake

At least 15 brokerages raised their price targets on Intel’s stock to J. P. Morgan, the most aggressive move by the stimulation of the target by $12 to $80, which is well above the median price target of $65.

Sales in Intel’s data center business, a jump of 19%, and sales of cloud computing service providers increased by 48% year-on-year in the fourth quarter of the year.

(Info-graphic) with Intel’s data center sales: tmsnrt.rs/2NVUJZY)

“We think that Intel is benefiting from improvement in the macro-economic environment versus firm-specific improvements, at this time,” RBC Capital Markets-analyst Mitch Steves said, adding that he expects a strong performance from the data center to rival AMD (AMD.(O) and Nvidia (NVDA.D).

Shares of AMD, which will report earnings next week, rose 1 percent to an all-time high. Nvidia’s shares were up 1%. European chipmakers, ASML Holding NV, ASML.IF and STMicroelectricals NV (STM.(N) rose nearly 2%.

Intel’s stock was 8.6%, at $68.75, a level not seen since the height of the dot-com boom in 2000, the movement of the broader Nasdaq .IXIC, and the Philadelphia SE Semiconductor Index .Sarbanes-oxley at record high levels.

The other major chipmakers such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.T) and Texas Instruments (TXN.(O) have over-optimistic forecasts for the month, with the firm hope of an upturn in the market, which fell nearly 12% in 2019, according to research firm Gartner.

However, Intel has struggled with delays in the 10nm chip technology, is losing its edge to rival TSMC in the race to provide the “new information economy”, in which 5 g of autonomous vehicles, and artificial intelligence.

AMD has teamed up with TSMC for the launch of a new product that is based on the smaller 7nm design. Intel said on Thursday it would release its nine-10nm products this year, and the launch of the guide 7nm product in the next year.

“We continue to expect competitive headwinds and the impact of Intel’s server and PC CPU to manage it in the next few quarters, as AMD continues its attack on Intel’s dominance,” Morningstar analysts said.

Intel is also facing a shortage of chips for pcs, and the company has said that it would boost the capacity of such chips, it is a sign that the production woes that have plagued chipmakers over the past few years, it will start to ease.

Reporting by Neha Malara and Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty

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