Intel Catches a Downgrade While ARM Holdings Gets an Upgrade

Intel Corporation’s (NASDAQ:INTC) rating has been cut from ‘Market Outperform’ to ‘Market Perform’ by BMO Capital. BMO has raised the rating for ARM Holdings plc (NASDAQ:ARMH) to ‘Outperform”.

This follows Hewlett-Packard’s (NYSE:HPQ) decision to put ARM chips in its server products next year. ARM is also getting support from Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) for its entry into server computing. Arm’s low-power designs are commonly used in mobile phones and in Apple’s (NASDAQ:AAPL) iPad tablet. So far these chips are not considered powerful enough to run larger computers and servers.

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Intel (NASDAQ:INTC) and AMD (NYSE:AMD), which use the x86 architecture for chips, have monopolized the server market. However, there is a growing demand — particularly from internet majors such as Facebook — for low-power options as energy prices rise. This has pushed HP to experiment with using Arm’s mobile phone technology.

According to BMO Capital’s Ambrish Srivastava, “longer term, ARM is now a viable competitor in servers in our view.”

Here’s how these tech stocks (NYSE:XLK) are trading now:

  • Intel Corporation (NASDAQ:INTC): The shares recently traded at $23.72, down $0.18, or 0.75%. Its market capitalization is $123.20 billion. They have traded in a 52-week range of $19.16 to $25.20. Volume today was 23,018,336 shares versus a 3-month average volume of 67,888,300 shares. The company’s trailing P/E is 10.27, while trailing earnings are $2.31 per share. The company pays a dividend of $0.84 per share for a dividend yield of 3.40%. About the company: Intel Corporation designs, manufactures, and sells computer components and related products. The Company’s major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, systems management software, conferencing products, and digital imaging products. Get the most recent company news and stock data here >>
  • ARM Holdings plc (NASDAQ:ARMH): The shares recently traded at $28.19, up $0.52, or 1.88%. Its market capitalization is $12.67 billion. They have traded in a 52-week range of $16.46 to $32.18. Volume today was 2,202,536 shares versus a 3-month average volume of 4,549,640 shares. The company’s trailing P/E is 72.84, while trailing earnings are $0.39 per share. The company pays a dividend of $0.11 per share for a dividend yield of 0.40%. About the company: ARM Holdings plc develops processors, data engines, peripherals, software, and tools. The Group’s solutions are used in a variety of applications, including in the automotive, consumer entertainment, digital imaging, mass storage, networking, security, and wireless industries. Get the most recent company news and stock data here >>
  • Hewlett-Packard Company (NYSE:HPQ): The shares recently traded at $26.21, up $0.57, or 2.22%. Its market capitalization is $52.08 billion. They have traded in a 52-week range of $21.50 to $49.39. Volume today was 4,811,100 shares versus a 3-month average volume of 29,506,800 shares. The company’s trailing P/E is 6.15, while trailing earnings are $4.26 per share. The company pays a dividend of $0.48 per share for a dividend yield of 1.80%. About the company: Hewlett-Packard Company provides imaging and printing systems, computing systems, and information technology services for business and home. The Company’s products include laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems. Hewlett-Packard sells its products worldwide. Get the most recent company news and stock data here >>
  • Microsoft Corporation (NASDAQ:MSFT): The shares recently traded at $25.95, down $0.04, or 0.15%. Its market capitalization is $218.30 billion. They have traded in a 52-week range of $23.65 to $29.46. Volume today was 19,601,454 shares versus a 3-month average volume of 64,827,000 shares. The company’s trailing P/E is 9.43, while trailing earnings are $2.75 per share. The company pays a dividend of $0.80 per share for a dividend yield of 3.00%. About the company: Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices. Get the most recent company news and stock data here >>
  • Apple Inc. (NASDAQ:AAPL): The shares recently traded at $397.19, up $0.68, or 0.17%. Its market capitalization is $369.09 billion. They have traded in a 52-week range of $297.76 to $426.70. Volume today was 5,267,359 shares versus a 3-month average volume of 22,615,100 shares. The company’s trailing P/E is 14.35, while trailing earnings are $27.68 per share. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Get the most recent company news and stock data here >>

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