Intel Corp. (INTC) rose the most in more than 18 months after FBR Capital Markets raised its rating on the stock to the equivalent of buy, saying the world’s largest chipmaker’s development of mobile technology gives it “enough new avenues of growth.”
Intel advanced 4 percent to $25.24 at the close in New York, for the biggest jump since Nov. 30, 2011. The shares have risen 22 percent this year, while the Standard & Poor’s 500 has added 15 percent.
Intel has redesigned one of its marquee chips to better compete in the market for mobile devices and the new growth path is enough to outweigh challenges in the personal-computer market, Christopher Rolland, an FBR analyst, wrote in an investor note. There is “strong buzz” for the new chip design, known as Silvermont, he wrote in the note, where he upgraded the shares from the equivalent of hold. He also increased his price target to $28 from $23.
Additionally, Barron’s said in a June 1 article that Intel’s shares may double within five years as early data suggests the Santa Clara, California-based company’s chips are poised to grab market share in tablet and smartphones.
To contact the reporter on this story: Niamh Ring in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Kevin Miller at email@example.com