Intel to rally 16% this year as earnings beat expectations, Pacific Crest says

Intel Corp. CEO Brian Krzanich
Ethan Miller | Getty Images

Pacific Crest reiterated its overweight rating for Intel shares, saying the chipmaker's earnings for the December quarter will beat Wall Street's consensus estimate.

The company will report fourth-quarter results on Thursday.

Intel's "CCG [client computing group] should drive Q4 results to be at the higher end of guided range," analyst Michael McConnell wrote in a note to clients Sunday. "Secular growth trends remain intact in DCG [data center group] ... with revenue growth reacceleration likely in 2017."