Intel surges as PC market shows signs of recovery.
By Samrhitha A
October 27, 2023 – 2:11 PM UTC
(Reuters) – Intel (INTC.O) rose more than 9% on Friday and sparked a jump in chip stocks after its upbeat forecast signaled that the personal computer market was rebounding from its quarters-long slump.
The chipmaker was set to increase its market value by more than $10 billion, if gains hold. Other chip firms such as AMD (AMD.O), Nvidia (NVDA.O) and Arm rose 1% to 2%.
“(Intel) does appear to have turned the corner on the worst of it”, Bernstein analysts said, pointing to the improvements in the PC-focused business and customers it had signed for its chip contract manufacturing business, among others.
Under CEO Pat Gelsinger, Intel is trying to turn around its business by making heavy infrastructure investments that the firm hopes will give it an edge in chipmaking and allow it to compete with the likes of Taiwan’s TSMC (2330.TW) for foundry clients.
After securing three unnamed clients for the contract manufacturing unit, Gelsinger told Reuters on Thursday that he expects to close a deal for a fourth customer before the end of the year.
“The foundry business is slowly taking shape. The announcement of new customers is a clear positive that shows there is customer interest in what Intel brings to the table,” Logan Purk, analyst at Edward Jones, said.
Intel also forecast fourth-quarter revenue and margins above Wall Street estimates on Thursday, after it reported a smaller-than-feared decline in the segment that houses its PC business for the July-September period.
At least 17 analysts raised their price targets on the stock, boosting the median view to $37, according to LSEG data. Intel has rallied 23% this year, but its gains have paled in comparison to the 44.6% jump at AMD and nearly three-fold rise at Nvidia.
Intel trades at 22.2 times its 12-month forward earnings estimates, compared with Nvidia’s 26.06.
Bernstein analyst Stacy Rasgon said Intel’s “AI story still seems marginal” and the “datacenter performance continues to suffer from significant headwinds”.
The company is under heavy pressure in the data center chip market from Nvidia, whose graphic processing units are used for training artificial intelligence models.
Sales at Intel’s data center business, which also houses its AI chip division, dropped 10%. But the company has seen interest surge for its “Gaudi” AI chips.
“There’s a lot of interest in that. We’re now supply constrained on Gaudi and racing to catch up to that,” Gelsinger said.
(This story has been refiled to correct the syntax in analyst comment in paragraph 7.)
Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shounak Dasgupta
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What implications does this revelation have for the accountability and transparency of government officials and the role of the media in reporting on high-profile investigations
A Former U.S. Attorney Claims DOJ Hindered Hunter Biden Probe
In recent news, a former U.S. attorney has claimed that the Department of Justice hindered the investigation into Hunter Biden, the son of President Joe Biden. This revelation comes amidst ongoing scrutiny and speculation surrounding Hunter Biden’s business dealings and potential conflicts of interest.
According to the former U.S. attorney, the DOJ placed obstacles in the path of the investigation, preventing it from proceeding smoothly and effectively. These alleged hindrances raise questions about the independence and integrity of the Department of Justice, as well as its commitment to pursuing justice without bias or political interference.
The claims made by the former U.S. attorney are serious and should be thoroughly investigated. It is crucial for the American people to have confidence in the impartiality and fairness of their justice system. Any perceived impropriety or obstruction in high-profile investigations undermines public trust and erodes the credibility of our institutions.
This development also highlights the importance of accountability and transparency in government. Elected officials and their family members should be subject to the same scrutiny and investigation as any other individual. No one should be above the law, regardless of their political connections or familial ties.
Furthermore, this story raises questions about the role of the media in reporting on these matters. The mainstream media has faced criticism for its handling of the Hunter Biden story, with accusations of biased coverage and possible attempts to suppress or downplay the allegations. It is essential for the media to fulfill its duty to the public by providing objective and comprehensive reporting, allowing citizens to form their own informed opinions.
Ultimately, the allegations made by the former U.S. attorney regarding the DOJ’s handling of the Hunter Biden investigation are concerning and warrant further investigation. The American people deserve transparency, accountability, and confidence in their justice system. It is crucial that these claims are thoroughly examined, and if any wrongdoing is found, appropriate action should be taken to ensure that justice is served.
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