Amwal Al Ghad English - 2014-06-14 07:33:02
Intel Corp. (INTC)’s stock soared to its highest level in more than a decade, fueled by an improved sales forecast as companies start spending more to upgrade their aging computer systems.
The stock today jumped 6.8 percent to close at $29.87, the highest level since February 2004, after the world’s largest semiconductor maker raised its second-quarter revenue projection yesterday after the markets closed. Intel also said annual sales will increase for the first time since 2011, buoyed by improving business demand for personal computers.
The higher forecast provides another hint of optimism in the PC industry, where Intel gets most of its revenue, after two straight years of declining global shipments. Even as consumers shun PCs in favor of mobile devices, demand for Intel’s microprocessors is getting a lift as companies replace aging computer systems, said Ian Ing, an analyst at MKM Partners.
“In the short to medium term, it looks like the market has stabilized, and business and corporate PCs are driving a lot of strength,” said Ing, who has the equivalent of a hold rating on Intel stock. “It’s really a nice positive for them, even without needing the consumer to come back yet.” More»