Piper Jaffray Says PC Weakness Should be 'No Surprise' to Intel (INTC) Investors; Reiterates Overweight

Piper Jaffray reiterates an Overweight rating and $38.00 price target on Intel (NASDAQ: INTC) despite news of PC weakness. Analyst Ruben Roy says that the news of a weak PC market should come as "no surprise" to INTC investors and should have little impact on INTC's stock price.

Roy commented, "AMD lowered its 2Q15 revenue guidance to -8% q/q (vs. -3% q/q previously) and its nonGAAP GM guidance to 28% (32% previously) due to weaker than expected consumer PC demand. However, news of a weak PC market should be no surprise to INTC investors and should have little impact on INTC's stock price. We note that our recent note, following our recent supply chain meetings in Taiwan and our meetings with INTC management, left us incrementally cautious on near-term prospects for INTC. Further, results from PC DRAM maker MU confirmed a tough 2Q15 for PCs. However, our checks indicate that supply chain players expect a 2H15 snapback in PC units as indicated by lower than normal inventor levels and the upcoming Windows 10 release. Outside of PCs we believe INTC's other segments remain healthy. Reiterate OW."

For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Shares of Intel closed at $30.04 yesterday.

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