Intel Stock Reaches 15-Year High; Raises Q3 Revenue Target For PC
Intel is expecting a Q3 revenue of $15.3-15.9 billion as compared to the previous, $14.4-15.4 billion. Intel claims that there are signs of increasing PC demands and hence the company is raising the bar. This would mean a yearly gain of 7.8% which is the best the company has seen since Q3 in 2014. How does this affect Intel Stock? Let’s find out.
PC demand has been falling for some time now as we have talked about earlier and this has affected the company in a negative way. This is due to the shift from PC to mobile devices and this is not a temporary shift. This is what seems to be the permanent trend and we will most likely see more people moving to mobile devices that allow more portability although not being as powerful as a PC. Intel has been looking to cloud computing to counter this shift.
Back in April, the company announced that it would be laying off 12,000 employees which make 11% of the staff due to the decreasing PC demands. There is no doubt that all these mentioned things are affecting Intel Stock in one way or the other.
Q3 R&D along with MG&A expenses are forecasted to be $5.2 billion which is 100 Million over the previous guidance. Intel has some modem chips in the new iPhone 7 and this will replace the Qualcomm chips in those devices but not all phones. There will be some versions of the phone that have Qualcomm chips.
Intel stock rose 3% to 37.67 in today’s stock market and the highest seen was 38.05, this is the best since January 2001. According to IBD:
Intel may have taken a hit due to the decrease in PC demand but that is not the end of the world. There will always be people that will need a PC plus there are more people coming into the PC gaming world each year.
What do you think about the Intel stock?