3 Chip Stocks to Note Now: Intel’s Bottom Line, Broadcom Shows Upside, Gaming’s Not Dead for AMD
Intel Corp. (NASDAQ:INTC): Credit Suisse has bumped its price target up on Intel to $30 from $28. The firm argues that accelerating Data Center Group (DCG, Xeon server CPUs) growth will boost the chip company’s bottom line, as the unit had a $1.23 billion operating profit on just $2.74 billion in revenue. By comparison, Intel’s PC CPU unit needed $8.1 billion in revenue to generate a $2.66 billion operating profit.
Broadcom (NASDAQ:BRCM): Susquehanna upgraded Broadcom to Positive from Neutral based on reset expectations and upcoming catalysts that include the iPhone 6 product cycle, potential improvement in networking, and upside from the recent Renesas acquisition. The shares’ price target has been raised to $35 from $33.
Advanced Micro Devices (NYSE:AMD): Matt Skynner, the corporate vice president of AMD, claimed that the rise in console gaming does not necessarily mean PC gaming is on the decline. He pointed out that since many architectures are similar, it provides additional opportunities to port games from the latest consoles onto the PC, thus meaning that the two markets can be synergistic rather than opposing.