The tech company had decided to enter the memory chip making business again along with fixing its China facility to start a new project.
The increase in shares seen by the American tech company was of 7% which was witnessed in the last five trading days. The increase in share was due to the new confidence the investors of the chipmaker company. The confidence that the investors have in the company’s stock is mainly because it was able to provide acceptable annual reports.
The digital technology platform in its reports gave the complete lookout of the coming year 2016 along with the increased and raising quarterly cash dividends. The company had always relied on the PC market all across the globe which was a dying market and this decision had affected the shares of the company a lot because of which the investors completely lost faith in Intel Corporation. To get the attention of everyone off the PC sector related issue, the company is trying to emphasize on the fact that it acquired Altera Corporation which is a programmable chip maker.
The technology platform is now trying to generate more revenues from elsewhere and has disclosed its plans of making a comeback to the memory chip making business in collaboration with Micron Technology, another veteran memory chip maker. Its plans of manufacturing 3D Xpoint Technology are expected to come through as well since the company has decided to invest $5.5 billion in order to fix and transform the factory that it has in China.
Analysts have commented on the stock of the tech company along with sharing their target price estimations. According to the stock experts at Northland Captial, the target price in a 12-month period stands at $39 and the rating given by the analysts of the research and financial services firm was Outperform. Such rating was given to the Intel’s stock mainly because of its strong IPO portfolio.The analysts have the firm have shown complete faith in the company and its future plans of starting the 3D Xpoint technology business in China along with taking steps to enter the memory chip making business.
In the long run, the analysts suggested that this new business could be a tech game changer and the entry in to the memory business will also increase its credibility and prove to be a positive change in the company. The tech company can even claim sizable tax incentives from the plant in China.
As per the last trading session, the stock of the company was trading up 0.29% at a share price of $34.56. This share price prevailed from the pre-market trading session. The earnings per share reported by the company were 2.34. The dividend yield of the company is between 0.24 and 0.27 along with e market capitalization of $163.04 billion.