Intel’s chances of catching up with AMD

0
337

Intel’s chances of catching up with AMD

On Wednesday, Intel (INTC) shares grew sharply after a management change was announced by the chipmaker. On the first day after that, trading opened with a nearly 12 percent increase in the market, but a reversal followed.

On February 15, Intel CEO Bob Swan will step down and be succeeded by the new VMware (VMW) Director, Pat Gelsinger.

During Bob Swann’s brief time at the helm of Intel, Intel suffered from expensive development delays, allowing competitor Advanced Micro Devices (AMD) to expand its share of key markets: data center systems for gaming.

We assume that Gelsinger’s presence would help Intel take back market share from AMD and other rivals. In the technology sector, Gelsinger has considerable experience.

Intel said it expects its fourth-quarter financial performance to surpass its current estimate of sales and earnings per share of $17.4 billion and $1.02, respectively, to ease market fears regarding the timing of the management transition. Intel will also have an update on the “significant progress” achieved in the 7nm process implementation.

We expect this information to be presented by the release on 21 January of the quarterly financial report. The company’s shares would appear to settle in the $55-60 per share range by then.

LEAVE A REPLY

Please enter your comment!
Please enter your name here