Intel surges to a 17 year high after earnings beat and dividend increase

  • Shares jumped as much as 10 percent Friday.
  • Credit Suisse upgraded the stock to Outperform Friday morning and raised the target price.
  • With Friday's surge, Intel is up more than 7 percent year to date.
Brian Krzanich Intel CEO
Frederic J. Brown | AFP | Getty Images
Brian Krzanich Intel CEO

Intel surged to its highest levels since September 2000 on Friday, up as much as 10 percent, boosted by better-than-expected earnings, improved guidance, and a 10 percent dividend increase.

The company beat Wall Street estimates when it reported earnings Thursday. That is being viewed by some that the chip vulnerabilities Meltdown and Spectre, revealed earlier this month, will not hurt Intel's bottom line as much as expected. The company also issued 2018 earnings guidance above Wall Street estimates.

Intel also raised its dividend 10 percent in response to the GOP tax bill, adding to a growing list of companies that have returned tax savings to employees or shareholders.

Research firm Credit Suisse upgraded the stock to Outperform Friday morning, and raised the target price to $55 from $42, citing potential for enterprise growth and conservative guidance.

"Absolute performance has been strong and our valuation concerns did not materialize owing in large part to better execution," the firm said.

With Friday's surge, Intel is up more than 7 percent year to date and more than 30 percent in the last 12 months.