Intel Corporation (NASDAQ:INTC) has been doing very well on the market recently. The company was not rated as a “market perform” stock by Sanford Bernstein and they have now finally upgraded it from an “under perform” stock.
Stacy Rasgon was on CNBC recently and explained the factors behind upgrading Intel Corporation (NASDAQ:INTC). According to him, heavy investment, heavy CAPEX alongside, negative earnings revisions other key factors were the reasons for downgrading the stock earlier. However he admitted that they got it all wrong and the price of the stock went up without actually caring for the factors Sanford Bernstein thought would impact investors’ will to invest in Intel Corporation (NASDAQ:INTC).
Rasgon also said that the PC segment of Intel Corporation (NASDAQ:INTC) is very strong now which has surprised him. So that means that the PCs are not yet dead and they might hang around at least for a while. He discussed few positives about Intel Corporation (NASDAQ:INTC)’s stock over the next few quarters and said that PCs market is on an upside currently and that would be one of the catalysts that would help the stock. However most of it is coming from corporate orders which might be due to the EOL (End of Life) of Windows XP.
Rasgon said that Intel Corporation (NASDAQ:INTC) is about its buyback authorization from a capital allocation and cash return front. He feels that the company should increase the buyback authorization. He was worried about the estimates for Q3 going up due to the performance of stocks and if the revenue doesn’t get generated as expected, it might impact the stock. According to him, Intel Corporation (NASDAQ:INTC) looks sub seasonal for Q3 though Q2 has been strong. He said that the mobile revenue has to go up as they seem to have a risk of getting lesser from that division and PC revenue has to be on upside continuously and probably the Data center recovery Intel Corporation (NASDAQ:INTC) is hoping for.
Even the recent tech list released by Goldman Sachs has had a lot of names from the chip manufacturing industry. So people seem to be liking these stocks a lot.