Top Stories
Top Stories

Intel to rally 25%, Evercore ISI says

Intel CEO Brian Krzanich
Getty Images

Investors should buy Intel on the prospect of accelerating growth from its data center business in the coming year, according to Evercore ISI, which upgraded the shares of the chip company to buy from hold.

"The transformation of carrier networks is currently at hand (networks being upgraded to scale to connected 50B devices and 5G into the 2020 time frame) where the telco companies are moving from a vertically oriented solution to a standardized, cloud based, high volume [Intel's] x86 server platform," analyst C.J. Muse wrote in a note to clients Monday.

"While we recognize potential competition from ARM and IBM's Power9 architecture for certain workloads in the Data Center, we think Intel's competitive moat remains, enabled by ongoing innovation with its Xeon processors coupled with recent product introductions including Optane, FPGA, and Silicon Photonics."