(Photo: Reuters / Choi Dae-woong)
Despite warning that third-quarter revenue will be below expectations, shares of Intel rose more than 3 percent in Wednesday trading.
Despite warning that third-quarter revenue will be below expectations, shares of Intel (Nasdaq: INTC), the No. 1 chipmaker, rose more than 4 percent in Wednesday trading.
By the close, Intel rose to $26.21, up 83 cents, or 3.3 percent, after touching $26.42 earlier. The Santa Clara, Calif., semiconductor giant forecast third-quarter revenue around $14.3 billion, adding it could be as much as $500 million lower.
While Intel said demand for chips for PCs rose a meager 3 percent, demand for units designed into servers rose 15 percent.
- FOLLOW IBTIMES
Analysts, such as Uche Orji of UBS, said that was bullish, repeating a "buy" rating for the shares because of continued growth, as well as greater acceptance of the new Ultrabook line of chips for PCs that vie with the iPad from Apple (Nasdaq: AAPL), the world's most valuable technology company.
Analyst Shaw Wu of Sterne Agee, who kept his "neutral" rating, noted CEO Paul Otellini said he expected Intel to benefit once Microsoft (Nasdaq: MSFT) starts shipping Windows 8, whose OS will be compatible with all Intel designs. That could lead to higher revenue in the fourth quarter, despite the near-term outlook, he said.
This article is copyrighted by International Business Times, the business news leader