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Intel +4.3% AH on guidance hike; Microsoft, AMD, H-P, Nvidia also up

  • Citing stronger-than-expected business PC demand, Intel (INTC) now expects Q2 revenue of $13.4B-$14B, better than prior guidance of $12.5B-$13.5B and a $13B consensus.
  • Moreover, the chip giant now expects "some revenue growth" for the whole of 2014, after previously guiding for flat sales; the consensus is for 0.7% growth.
  • Full-year R&D/MG&A spending guidance has been upped by $300M to $19B-$19.4B.
  • The guidance hike follows several quarters of narrowing PC shipment declines, thanks in large part to healthy corporate demand. Windows 7 system purchases tied to Microsoft's decision to end Windows XP support have played a key role.
  • Other PC industry names are up in sympathy: MSFT +1% AH. AMD +1.4%. HPQ +0.8%. NVDA +0.7%.
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Comments (33)
  • defunkdreader
    , contributor
    Comments (61) | Send Message
     
    Don't tell me this is the XP transition...
    12 Jun, 04:28 PM Reply Like
  • civ-e
    , contributor
    Comments (343) | Send Message
     
    it says just that in one of the bullet points.
    12 Jun, 04:51 PM Reply Like
  • wil3714
    , contributor
    Comments (1951) | Send Message
     
    IFad is over

     

    http://bit.ly/1irXxFA
    12 Jun, 06:13 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (765) | Send Message
     
    And the "death of the PC" continues right on pace...
    12 Jun, 04:30 PM Reply Like
  • Willow Street Investments
    , contributor
    Comments (998) | Send Message
     
    Never listen to Wall Street analysts.
    12 Jun, 04:36 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (395) | Send Message
     
    I'm curious, and this is just pure speculation, if this revised higher guidance has anything to so with the Surface 3 and if so how much, or is it more just the overall PC sales industry rebounding in general.
    12 Jun, 04:33 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9081) | Send Message
     
    Unlikely that Surface Pro 3 did anything to impact these sales.
    12 Jun, 04:48 PM Reply Like
  • wil3714
    , contributor
    Comments (1951) | Send Message
     
    It impacts guidance
    12 Jun, 06:13 PM Reply Like
  • Bottom Up Investing
    , contributor
    Comments (103) | Send Message
     
    I thought you left...
    12 Jun, 06:33 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1611) | Send Message
     
    The new Surface Pro 3 with the new range of Intel CoreTM is replacing Ipads in hospitals and health care clinics. UPMC, a leading integrated healthcare delivery and financing system in Pittsburgh will be buying 2000 pro3. From Schwabs s StreetSmart Edge news.
    12 Jun, 08:45 PM Reply Like
  • Minutemen
    , contributor
    Comments (1198) | Send Message
     
    The sleeping giant stirs. Long INTC.
    12 Jun, 04:38 PM Reply Like
  • db313706
    , contributor
    Comments (213) | Send Message
     
    Intel is nearing the $30 threshold...

     

    ...Isn't that the 7th sign of impending Ragnarok?

     

    Long INTC
    12 Jun, 04:41 PM Reply Like
  • JayXu
    , contributor
    Comments (266) | Send Message
     
    Who were the idiots yelling "death of PC"? The stupidest bunch ever...
    12 Jun, 04:44 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (395) | Send Message
     
    While I think the ridiculousness of that kind of thinking is obvious, as it got louder, it presented level-headed investors an easy decision in which stocks to nibble on.
    12 Jun, 04:47 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9081) | Send Message
     
    Consumer PC likely still weak, but corporate (1/2 of INTC's PC business by revenue, probably more by gross margin $) looks quite good.
    12 Jun, 04:50 PM Reply Like
  • BlueOkie
    , contributor
    Comments (5560) | Send Message
     
    What about the huge fine Intel has been avoiding for the past 5 years. Pay up and how does that affect bottomline
    12 Jun, 04:50 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    Blue, the fine was paid long, long ago. The appeal was about getting it back.
    12 Jun, 05:04 PM Reply Like
  • mr wonder
    , contributor
    Comments (546) | Send Message
     
    I am impressed by the knowledge of Intel's board about their own business.
    Forecasting flat revenue's during Q1 and hardly one month later they come and say they expect $700 mil higher revenue.... and $ 300mil higher expenditures .... and more taxes ....

     

    Anyway, isn't $ 29+ after hour response not heavily exaggerated?
    Lets assume 20% net margin. This $ 400 (extra revenue reduced by the extra expenditures) results in 80 million increase in earnings, resulting in $0.016 EPS extra. At a P/E ratio of 15 this legitimizes a $ 0.24 upswing. Starting from today's closing price after hours trading should be around $ 28.20.

     

    Am I missing something or are some investment banks trying to hype up this news?
    12 Jun, 05:15 PM Reply Like
  • khajnar24
    , contributor
    Comments (190) | Send Message
     
    It's vindication that like the death of Mark Twain, the "death of the PC" might have been somewhat exaggerated.
    12 Jun, 05:25 PM Reply Like
  • Ajayyy
    , contributor
    Comments (327) | Send Message
     
    If anything that 5% move is too small. For a stock with a history of disappointments and lack of direction, good news, no matter how small should have an even more exaggerated impact.
    12 Jun, 05:26 PM Reply Like
  • Willow Street Investments
    , contributor
    Comments (998) | Send Message
     
    Barrons wrote an article about a year ago saying that within 3-5 years INTC would be a $45 stock and with dividends the equivalent of a $50 stock. Long INTC since 1996.
    12 Jun, 05:30 PM Reply Like
  • mr wonder
    , contributor
    Comments (546) | Send Message
     
    At a P/E ratio of 15 one can't say Intel is undervalued, especially considering the future of lower margins on SOC's who sooner or later are going to replace all the high margin CPU's of Intel.

     

    Anyway, as an Intel investor I am happy with this sudden upswing, but I am wondering whether this is not the moment to take advantage of the hype :)
    12 Jun, 05:36 PM Reply Like
  • whiteowl
    , contributor
    Comments (112) | Send Message
     
    This can trigger a fundamental reappraisal by doubters of INTC's prospects. So no, I don't think it's too strong a move. We've now got stabilization in PCs, and strong growth in the Data Center business. Evidence of traction in mobile, even if it takes a while, will produce similar upside. And any new-tech developments will be just icing on the cake. Risk/reward is favorable here.
    12 Jun, 05:42 PM Reply Like
  • Ajayyy
    , contributor
    Comments (327) | Send Message
     
    It's only one upgrade by one company, I wouldn't call this the stabilization in PCs or any fundamental shift. It is simply, INTC doing a little more business than expected, lets not read too much into this.
    12 Jun, 05:46 PM Reply Like
  • Minutemen
    , contributor
    Comments (1198) | Send Message
     
    Ajayyy: the news is not an upgrade by an analyst; rather it is Intel increasing it's own previously stated Q2 and full year revenue on increasing corporate PC demand.
    12 Jun, 06:06 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (395) | Send Message
     
    Perhaps it is indeed more than that. Like MSFT pent up demand after years of sideways trading has caused investors to buy a company with [finally] good news and an uptick in forward guidance. INTC has a huge reach, and as such even as the company announces better than expected business in its sales, it props up many other names in sympathy.

     

    Tablet sales are slowing, could PC/Lappy/Hybrids be the reason?
    12 Jun, 07:18 PM Reply Like
  • Doublewide Investing
    , contributor
    Comments (54) | Send Message
     
    Mr. Wonder, I think it is not so much the $ increase this Q or this Y but the change in the slope of the curve looking forward that makes the stock jump. Now, can INTC maintain a better curve or is it a bump for one or two Q's.
    12 Jun, 07:30 PM Reply Like
  • Alaric
    , contributor
    Comments (7) | Send Message
     
    Up 5.33% now AH should be a good day tomorrow.
    12 Jun, 06:20 PM Reply Like
  • Minutemen
    , contributor
    Comments (1198) | Send Message
     
    AH volume is very strong as well. That bodes well for tomorrow.
    12 Jun, 06:30 PM Reply Like
  • techy46
    , contributor
    Comments (6268) | Send Message
     
    Let's see that PC's Dead, the PC's Reborn, the PC's Dead............?
    12 Jun, 08:46 PM Reply Like
  • Daniel Radakovich
    , contributor
    Comments (748) | Send Message
     
    Time is a good business' best friend.
    12 Jun, 08:55 PM Reply Like
  • kata
    , contributor
    Comments (600) | Send Message
     
    Intc always traded on the gross margins and an increase to 64% is pretty good indeed.
    12 Jun, 09:19 PM Reply Like
  • John Georgiou
    , contributor
    Comments (234) | Send Message
     
    Of course we have good news for Intel , shown even to technical analysis.

     

    http://bit.ly/1pcLkfw
    13 Jun, 09:10 AM Reply Like
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