Everyone noticed Intel and AMD are doing well.
Dell and COmpaq are doing pretty well, too.
Steve
cbs.marketwatch.com
Intel, AMD power chip gains
By Melanie Austria Farmer, CBS MarketWatch
Last Update: 4:20 PM ET Jan 11, 1999
NEW YORK (CBS.MW) -- Semiconductor stocks advanced Monday,
led by positive comments on Intel and Advanced Micro Devices as Wall
Street braced for the chip-makers' quarterly reports.
The Philadelphia Semiconductor Index rose 2.9
percent while the Goldman Sachs Computer
Hardware Index climbed 2.6 percent.
Intel (INTC) shares gained 9 3/4 at 139 7/16 after
Lehman Bros., which reiterated its "buy" rating,
raised its 12-month price target to $180 from $135
a share. In a research note, Lehman said Intel's
earnings during the next few years will be driven by
"reasonable" sales growth, expanding gross and
expense margins and a continuing share buyback
program.
Elsewhere, computer hardware stocks were also
on the rise with news from computer makers Dell
and Compaq.
Dell (DELL) launched a new light-weight laptop
computer using an Intel Pentium processor at 266
MHz for $2,299. Dell said the new Dell Latitude LT laptop has complete
features of a notebook PC and comes with built-in ports that allow for the
use of peripherals, such as a mouse, external monitors, printers and
presentation projectors.
Compaq (CPQ) said it has agreed to buy Shopping.com for $220 million
in cash. Compaq said it's buying the online retailer in a strategic move for
its Alta Vista Internet guide to become a leading online transaction site.
See related story.
Compaq shares rose 3 to 48 3/8. Shares of Dell gained 4 3/16 at 82.
Looking toward Intel's results, Lehman said that on a near-term basis the
chip giant should make $1.07 for the fourth quarter, a penny above what
analysts polled by First Call expect. Analysts at Lehman also believe Intel
can reach their fiscal 1999 estimates of $4.45. The current First Call
consensus estimate is $4.33 for Intel's fiscal 1999.
Intel is scheduled to report fourth-quarter earnings after the market closes
Tuesday.
Separately, Intel said it's "next generation" Katmai chip will adopt the
Pentium III brand name. The new Pentium III is scheduled to be released
in the first quarter of this year and that it offers enhanced multimedia
"realism."
"Around the world, PC users associate the Pentium brand with the highest
PC performance, compatibility and quality available," said Jami Dover,
Intel's vice president of sales and marketing. The company didn't disclose
pricing for the products. See press release.
Advanced Micro Devices (AMD) shares rose 3 7/8 to 31 7/8, a gain of
14 percent after Piper Jaffray analyst Ashok Kumar lifted his
fourth-quarter earnings estimates to 21 cents from 13 cents a share. AMD
is expected to make 18 cents, according to the First Call estimate.
Strong processor shipments are expected to have driven up revenue up
17 percent sequentially and 31 percent year over year to $805 million,
Kumar said in a research note. AMD's fourth-quarter earnings are due
out on Wednesday. |
