Intel Corporation (NASDAQ:INTC) has today surged by as much as 7.5% to a high of $30.06, having raised the second quarter revenue forecast yesterday, after market hours. Citing stronger than expected demand for personal computers, Intel expects annual sales to increase for the fist time since 2011, according to a report from Bloomberg. The company projects sales of $13.7 billion, plus or minus $300 million, up from the previous estimate of $13 billion. Intel is scheduled to report its second-quarter results on July 15. Analysts expect the company to announce a profit of $0.46 per share.
“In the short to medium term, it looks like the market has stabilized, and business and corporate PCs are driving a lot of strength. It’s really a nice positive for them, even without needing the consumer to come back yet”, said Ian Ing, an analyst at MKM Partners.
Analyzing the situation, CNBC‘s David Faber and Jim Cramer are optimistic about the prospects of Intel Corporation (NASDAQ:INTC). Cramer has thrashed all analysts that have a bearish outlook for Intel and has branded himself an “Intel-aholic“.
“The idea that this company is going to have one quarter up and go back; Intel – sell […] so wrong, it’s frightening”, Cramer said.
Cramer cites Intel’s Chief Executive Officer, Brian Krzanich, who had previously pledged to cut down on the company’s capital expenditures, a move that is expected to result in an explosion of earnings. He eyes an increase in demand for Intel chips, an increase in gross margin to 67%, which will allow Intel to “triple its dividend and cut the cap ex”. He also predicts the stock to surge to $40 per share.
Cramer and Faber have questioned the actions of a number of brokers who have issued bearish outlooks for the stock. They have also discussed the biggest winner – Michael Dell. You can watch the full video below: