July 16 Intel Corp's shares rose as
much as 7 percent to a decade-high, after the world's largest
chipmaker forecast quarterly revenue above analysts' estimates
on demand from companies looking to replace old PCs.
At least 19 brokerages raised their price targets on the
stock to $29-$45, while two brokerages raised their ratings to
an equivalent of "buy".
The broker actions came after Intel forecast on Tuesday
third-quarter revenue above the average analyst estimate.
Chief Financial Officer Stacy Smith told Reuters that PC
sales had stabilized, easing fears about the four-year decline
in computer sales as consumers turn increasingly to tablets and
Intel also raised its share buyback program by $20 billion.
"The company is showing clear growth in its PC segment and
acceleration in data center growth, suggesting, we think, better
growth potential in Intel's end markets than many investors
expect," Wells Fargo analysts wrote in a note.
Susquehanna Financial Group analyst Chris Caso, however,
said it would be tough to sustain the near-term strength in PC
and data center demand. He maintained his "neutral" rating on
Of the 46 analysts covering Intel, 18 have a "buy" or
equivalent rating on the stock, while 23 have a "hold" or
Intel's shares were up 6.5 percent at $33.78 in late morning
trading on the Nasdaq on Wednesday. The stock has gained more
than 32 percent in the 12 months to Tuesday's close.
(Reporting by Soham Chatterjee in Bangalore; Editing by Kirti