Intel’s quarterly outlook and results shattered expectations on Tuesday afternoon, boosting its shares to a 52-week high and fueling optimism over a tech sector recovery before the crucial holiday season.
Craig Berger, senior technology, media and telecom analyst with FBR Capital Markets, shared his outlook on the microprocessor giant.
“The results are very strong and the earnings power is more substantial than people expected, particularly because of the gross margin results and guidance for fourth quarter,” Berger told CNBC.
“Things are really good at Intel right now and consumer demand in particular seems to be the near-term driver.”
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Berger raised his price target on Intel to $27 from $23, but expressed concern that Microsoft’s new Windows 7 build-ahead may have pulled some fourth quarter PC production into the third quarter.
CNBC Data Pages:
Intel Competes With:
Advanced Micro Devices
Berger has investment banking clients who own shares of INTC. FBR Capital Markets acts as a market maker or liquidity provider for INTC.