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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (85117)	7/8/1999 4:54:00 PM
From: Joey Smith	Read Replies (2) \| Respond to of 186894

All: CBS artcile has small piece on recent software acquisition. IMO, Intel's transition outward to a network chip supplier will come sooner than most people think and will take many by surprise. cbs.marketwatch.com Hardware Stocks Apple gain boosts hardware stocks H-P rides increased price target to all-time high By Janet Haney, CBS MarketWatch Last Update: 2:17 PM ET Jul 8, 1999 Silicon Stocks Tech Report NEW YORK (CBS.MW) -- Personal computer makers' stocks rose Thursday, led by a rating upgrade to "buy" for Apple Computer and a boosted price target for Hewlett-Packard. Chip stocks followed in line. Apple Computer (AAPL: news, msgs) shares jumped 3 9/16 to 53 7/16 after BancBoston Robertson Stephens analysts Alex Mou and Dan Niles upped their rating on Apple to "buy" from "long-term attractive," with a price target of $75 per share. Mou and Niles also increased their profit estimates to $2.80 from $2.75 per share for 1999 and to $3 from $2.86 per share in 2000. These figures compare to the First Call consensus predictions of $2.78 and $2.88, respectively. The Robertson Stephens analysts said the PC giant is "well positioned" for the fourth quarter and said its software package "should provide upside to earnings and margins." The analysts added that Apple is expected to release its Sonata software in the fall and the Mac OS X operating system next year. Hewlett-Packard (HWP: news, msgs) shares, meanwhile, rose 5 13/16, or nearly 6 percent, to 105 1/8, after SG Cowen analyst Richard Chu upped his price target on the company to $125 per share. The stock traded as high as 106 3/8, an all-time high. The Goldman Sachs Computer Hardware Index advanced 2.4 percent. "I think it's an Internet-oriented world and the beneficiaries are the infrastructure vendors, and that continues. Frankly, I don't see anything on the horizon that suggests that that's going to change," said Fred Cohen, senior analyst at Daiwa Securities. Cohen advised avoidance of "the pure PC stocks," such as Compaq and Dell, and added that he views Apple as a "big winner." Cohen also said he expects some positive surprises on the order side from IBM. Shares of Compaq (CPQ: news, msgs) gained 1 1/16 to 26, Dell (DELL: news, msgs) was up 1 9/16 to 39 7/8, International Business Machines (IBM: news, msgs) moved higher by 1 5/16 to 134 1/8 and Gateway (GTW: news, msgs) crept up 1 1/4 to to 64 7/8. Major chip and chip-related players moved higher Thursday as the Philadelphia Semiconductor Index rose 2.8 percent. Micron Technology (MU: news, msgs) was the biggest advancer in the sector, with a 7.8 percent gain. The stock was up 2 13/16 to 47 1/16 on volume of 3.9 million shares. Meanwhile, shares of chip titan Intel (INTC: news, msgs) weren't helped much after the company said in a statement Wednesday that it's entered into an agreement to acquire privately held Softcom Microsystems in an all-cash transaction. Financial details of the deal weren't disclosed. Intel shares rose 1 3/16 to 65 9/16. Charlie Glavin, an analyst at Credit Suisse First Boston, said he thinks the deal should close by the end of the year and should have a "positive impact on Intel's top line in 2000." Softcom makes semiconductor products for original equipment manufacturers in the networking and communications industries. Elsewhere, Altera (ALTR: news, msgs) shares climbed 1 13/16 to 45, Novellus (NVLS: news, msgs) jumped 3 7/16 to 72 5/8 and Teradyne (TER: news, msgs) was up 3 3/4 to 74. Janet Haney is a reporter for CBS MarketWatch.