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It’s been a big day for tech stocks today as the markets surge higher. Stocks across the board are performing strongly, and the Dow Jones Industrial Average (INDEXDJX:.
Intel defends its server leadership
Intel Corporation (NASDAQ:INTC) has charged up the charts today with Dow-topping gains of about 2.7% so far. The stock hasn’t performed all that well year to date relative to the rest of the index, as it’s in the bottom third of the Dow Jones Industrial Average (INDEXDJX:.DJI) in 2013 with gains of about 10%, but the company received a big boost today after it announced the launch of its Avoton system on a chip — new, more powerful chips centered around the growing microserver market.
The company claims its Atom C2000 series of chips, which include the Avoton, offer considerably more power than its previous Centerton Atom chip or those produced by rivals. For investors, however, it’s a part of Intel Corporation (NASDAQ:INTC)’s drive to focus on new ways of increasing a top line that’s been threatened by the company’s slow start in the mobile segment and dim prospects for its dominant PC business. Intel Corporation (NASDAQ:INTC) already has one customer lined up for the Avoton: Hewlett-Packard plans to embrace the Avoton in shipments of microserver cartridges with its Moonshot servers later in the year.
Intel Corporation (NASDAQ:INTC) needs all the help it can get. Its data center group grew salesby a modest 3.6% for the first half of 2013. However, that was nowhere near enough growth from its second-largest business by revenue to beat out the losses incurred by its largest segment, its PC unit, which has taken a beating in 2013. Intel Corporation (NASDAQ:INTC) will have to defend its prominent position in the server market if it wants to keep up with investors’ expectations.
The Coca-Cola Company (NYSE:KO)‘s also up on the day, with shares gaining about 1.5%. The stock’s on the rise after The Coca-Cola Company (NYSE:KO)’s Mexico-based bottler Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) announced that it has offered to acquire Brazil’s second-largest Coke-bottler, Spaipa SA, for $1.86 billion.
It’s a costly deal for Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) and Coke, but one that could work out well for the beverage giant. Volume in North America and Europe has pulled back for The Coca-Cola Company (NYSE:KO), decreasing a respective 1% and 4% year over year in the most recent quarter as concerns about public health have spotlighted soda sales. However, Latin American volume grew 2% in that time, and Brazil is the hottest emerging market in South America. If The Coca-Cola Company (NYSE:KO) can continue to cultivate this growing market and establish its brand in Brazil, it will have a winner on its hand to help compensate for sluggish U.S. and European markets.
The article Tech’s Bounce Pulls the Dow to Triple-Digit Gains originally appeared on Fool.com and is written by Dan Carroll.
Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola and Intel. The Motley Fool owns shares of Intel.
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