Shares of Intel Corp. (INTC - Free Report) touched a new 52-week high of $36.04 on Sep 1, eventually closing at $36.02. The company returned 23.9% in the past one year and has added roughly 4.6% year to date. Average volume of shares traded over the last three months was approximately 21,619K.
What's Driving Intel?
Intel is one of the world’s leading producers of semiconductor components and digital platforms. Its focus was earlier on making the best computing chips and generating industry-leading margins from them. Now, Intel’s focus has shifted to a product range targeting different segments of the market, namely data center business, cloud and IoT.
In particular, Intel’s data center business and cloud have been registering significant growth. In this regard, the company recently said that it is acquiring Nervana Systems, an artificial intelligence startup based in San Diego. This deal will help Intel to enhance its prowess in data center as well as machine learning, which is gradually gaining prominence.
Another growth driver is the company’s recently launched 7th generation CPU –14nm Kaby Lakechip. Kaby’s biggest feature is improved support for 4K, which is likely to be a big positive going forward. Just like both Broadwell and Skylake, Kaby Lakechip comes with improved graphics performance, better CPU performance and longer battery life.
Also, the price appreciation may be attributed to Intel’s strong fundamentals, solid growth of its cloud business and better-than-expected second-quarter 2016 results reported on Jul 20.
In the second quarter, Intel reported earnings of 59 cents per share that surpassed the Zacks Consensus Estimate of 53 cents. The increase was driven by better operational efficiency and cost cutting measures. However, Intel’s revenue of $13.53 billion was within the guided range of $13.5 billion (+/-$500 million) but below the Zacks Consensus of $14.80 billion.
Also, management provided a solid guidance for the third quarter of 2016. Revenues are expected at around $14.9 billion (+/-$500 million), up 10.1% sequentially and 3.0% from the June quarter of 2015.
In the trailing four quarters, the company delivered an average positive earnings surprise of nearly 7.95%. Intel’s strong revenue growth, solid financial conditions, growth in areas like cloud computing, mobile, data center as well as strong long-term growth potential position it favorably.
Intel’s strong revenue growth, solid financial conditions, growth in areas like cloud computing, mobile, data center as well as strong long-term growth potential position it favorably.
Intel currently carries a Zacks Rank #2 (Buy).
Stocks that Warrant a Look
Some well-placed stocks in the technology space are NVIDIA Corporation (NVDA - Free Report) sporting a Zacks Rank #1 (Strong Buy), while Texas Instruments Inc. (TXN - Free Report) , and STMicroelectronics NV (STM - Free Report) , carrying a Zacks Rank #2 (Buy).
Confidential from Zacks
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of Intel Corp. (INTC - Free Report) touched a new 52-week high of $36.04 on Sep 1, eventually closing at $36.02. The company returned 23.9% in the past one year and has added roughly 4.6% year to date. Average volume of shares traded over the last three months was approximately 21,619K.
What's Driving Intel?
Intel is one of the world’s leading producers of semiconductor components and digital platforms. Its focus was earlier on making the best computing chips and generating industry-leading margins from them. Now, Intel’s focus has shifted to a product range targeting different segments of the market, namely data center business, cloud and IoT.
In particular, Intel’s data center business and cloud have been registering significant growth. In this regard, the company recently said that it is acquiring Nervana Systems, an artificial intelligence startup based in San Diego. This deal will help Intel to enhance its prowess in data center as well as machine learning, which is gradually gaining prominence.
Another growth driver is the company’s recently launched 7th generation CPU –14nm Kaby Lakechip. Kaby’s biggest feature is improved support for 4K, which is likely to be a big positive going forward. Just like both Broadwell and Skylake, Kaby Lakechip comes with improved graphics performance, better CPU performance and longer battery life.
Also, the price appreciation may be attributed to Intel’s strong fundamentals, solid growth of its cloud business and better-than-expected second-quarter 2016 results reported on Jul 20.
In the second quarter, Intel reported earnings of 59 cents per share that surpassed the Zacks Consensus Estimate of 53 cents. The increase was driven by better operational efficiency and cost cutting measures. However, Intel’s revenue of $13.53 billion was within the guided range of $13.5 billion (+/-$500 million) but below the Zacks Consensus of $14.80 billion.
Also, management provided a solid guidance for the third quarter of 2016. Revenues are expected at around $14.9 billion (+/-$500 million), up 10.1% sequentially and 3.0% from the June quarter of 2015.
In the trailing four quarters, the company delivered an average positive earnings surprise of nearly 7.95%. Intel’s strong revenue growth, solid financial conditions, growth in areas like cloud computing, mobile, data center as well as strong long-term growth potential position it favorably.
Intel’s strong revenue growth, solid financial conditions, growth in areas like cloud computing, mobile, data center as well as strong long-term growth potential position it favorably.
Intel currently carries a Zacks Rank #2 (Buy).
Stocks that Warrant a Look
Some well-placed stocks in the technology space are NVIDIA Corporation (NVDA - Free Report) sporting a Zacks Rank #1 (Strong Buy), while Texas Instruments Inc. (TXN - Free Report) , and STMicroelectronics NV (STM - Free Report) , carrying a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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