Intel remains bullish on partnership with ARM Holdings

IntelThe semiconductor chip manufacturing company Intel Corporation’s shares (NASDAQ: INTC) recorded a new 12 months high figure of $36.60 as on yesterday. The shares of the company have increased by 20% in this year. However, there is a decline of 51% in the current second quarter of the fiscal year 2016 as compared to its previous year. On a year to year basis, the revenue has only increased by 3%. Thus, it looks like the share prices of Intel are like stretched by the financial market. On the opposite side, the rise in share prices stems from some important reasons which are mentioned below:

A California-based company by the name Mountain View has reported a net income of $1.3 Billion or $0.27 per share during the second quarter on total revenue of $13.5 billion. During the same quarter last year, the net income of the company was $2.7 billion or $0.55 per share on total revenue of $13.2 billion.

By non-GAAP, the net income has decreased from $3.1 billion or $0.62 per share in Q2 2015 to $2.9 billion or $0.59 per share in Q2 2016. Thomson Reuters has analysed the survey and anticipated the company to report a net income of $0.53 per share on total revenue of $13.54 billion.

Intel Newsroom

Nervana Systems has been recently acquired by Intel Corporation. The former is a startup company based in San Diego which is involved in artificial intelligence. After the acquisition, the data centre business of Intel Company has strengthened considerably.

14nm Kaby Lakechip is a 7th generation processor launched by Intel recently. You can watch the video above. This is the latest processor and has become extremely popular because it offers improved graphics and better battery life. Intel is optimistic that it will reap benefits from the launch of this processor in the coming quarters of the financial year 2016-17.

Intel along with its competitor ARM Holdings (ARMH) has agreed to manufacture the chips of ARMH for embedded devices in its factory. Intel has allowed its rival company to take advantage of the latest technology so that it can make additional revenue in return. It is expected that the Internet of Things (IoT) will be worth $50 billion by the end of 2020. Intel is anticipating making a lot of cash from its foundry business by partnering with the ARM. In the Nikkei Asian Review, there was a report where it was said that Apple might place an order to Intel for A12 chips for the iPhone to be launched in 2018. If we consider the positives, it can be expected that the share prices of Intel Corporation will remain stable in the present quarter of 2016.

The current share price of Intel has broken the long-term resistance level of 35. MACD indicator’s main line is raising high in the bullish zone (above zero line) and has crossed over the signal line. It can be anticipated that Intel’s share will reach the long-term resistance level of 42. This resistance level is also the target price which is estimated by the Bank of America’s analysts.

Intel Stock Price September 7th 2016

Intel Stock Price: September 7th, 2016

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