Intel Corporation (NASDAQ:INTC) [Trend Analysis] is posturing a new threat to International Business Machines Corp. (NYSE:IBM). The growing popularity of hyper-converged infrastructure based on Intel’s x86 processors is a new threat for IBM. The hyper-converged appliances running on Intel’s commodity x86 processors are fast gaining traction in datacenters about world, which could be a threat for IBM’s (NYSE:IBM) server business. For Intel, however, this could be a boon because it will support the demand for Xeon chips.
So, IBM cannot afford to take a seat idle without venturing into hyper-converged infrastructure and what all IBM needs, is a change in outlook and current server strategy. However, growing popularity of hyper-converged infrastructure could be a missed prospects for the firm if it continues to be reluctant to offer consumers hyper-converged software and appliances.
On the other hand, Chip analysts at Citigroup (C), Roland Shu Christopher Danely recently review outlook of Intel (INTC) competing directly with Taiwan Semiconductor Manufacturing (TSM) in building chips for other firms, and declare TSM the likely winner in any such face-off. While Apple will still use Intel processors for its next generations of Mac computers, but the suggestion that Apple would use ARM-based A10 processors inside the new MacBook or iMac is unrealistic.
The software compatibility issue will render ARM-based Macs unattractive to Mac users who have already bought several x86-only Mac software products. Apple will still use Intel processors for its next generations of Mac computers.
Intel Corporation (NASDAQ:INTC) has kept up with the changing appetite, stock inched up around 0.70% in early session as it gain volume of 18.9 Million shares as compare to its average volume of 22607.99 shares and then traded at $37.44.
Analysts Remarks And Rating
Finally to see some strong financial remarks by WSJ over INTC performance. Out of the pool of analysts 18 gave their BUY ratings on the stock in previous month as 21″ Analysts having BUY in current month. The stock was ranked as Underweight by 1 analysts while 2 analysts gave SELL rank. Majority ranked Overweight from the pool of analysts.
The next year first quarter EPS estimates trend for current period shows $0.72 while one month ago this estimate trend was for $0.66. EPS indicator shows the robustness of the stock and its analysis opens up the clear picture of company’s profitability. On annual basis of EPS, FY 2017 Estimate Trends at current were for $2.81 and for the one month was for $2.71 as compared to three months ago was for $2.61. Whereas, INTC received highest price target of 49.00 and low target of 31.00. The stock price target chart showed average price target of 40.21 as compared to current price of 37.18.