NEW YORK – Shares of Intel Corporation (NASDAQ:) experienced a notable surge today, rallying over 6% on the New York Stock Exchange. The uplift in investor sentiment came after Mizuho Securities upgraded the semiconductor giant’s rating from “neutral” to “buy,” while also significantly raising its price target from $37 to $50.
The Japanese financial institution, known for its expertise in technology stocks, cited a series of factors for its optimistic outlook. Analysts at Mizuho project a resurgence in the PC and data center server markets come 2024, which they believe will benefit Intel substantially. The company is expected to outshine competitors with a robust lineup of product launches slated for next year.
In addition to the anticipated market revival, Mizuho highlighted the strategic divestment of Altera’s FPGA programmable circuits as a key value driver for Intel. This move is expected to contribute an additional $17 per share, propelling the company’s aggregate value to approximately $84 by the 2024-2025 timeframe.
Intel’s financial performance has also been a catalyst for the positive revision. On October 26, the company reported third-quarter net income of $297 million, or 7 cents per share, along with an adjusted profit of 41 cents per share. These figures not only topped analysts’ forecasts but were accompanied by revenue that exceeded expectations despite being lower year-over-year. Moreover, Intel’s fourth-quarter guidance suggested higher-than-anticipated sales and earnings per share.
Despite the recent uptick and Mizuho’s bullish stance, Intel’s shares are still trading at a considerable discount compared to rivals like Nvidia (NASDAQ:). As of today, Intel’s market capitalization has reached €181.67 billion.
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