Intel Corporation (NASDAQ:INTC), Micron Technology, Inc. (NASDAQ:MU) And Investment Opportunities
Intel Corporation (NASDAQ:INTC)’s stock has traded almost flat over past six months with less than a percent gain. Currently at $24.82, the stock is trading close to its 52 week high of $25.49 and about 29% above its 52 week low of $19.21. One may attribute this flat stock price performance to consistently declining PC sales world over. While the premier global market intelligence firm, IDC was expecting 9.7% drop in global PC shipments for calendar year 2013, recently it revised its estimates with a forecast for 10.1% dip. Moreover IDS also forecast-ed sequential 3.8% dip in global PC shipments during 2014.
The Good News
Citi Research recently mentioned in a report that corporate PC sales account for 49% of overall PC sales and these sales are stabilizing, “boosting prospects for Intel Corporation (NASDAQ:INTC).” Based on this estimate, the equity research firm also upgraded its rating for the stock of Intel Corporation from “neutral” to “buy”. Among others, equities research analyst at Drexel Hamilton also upgraded its rating for this PC chip maker from “hold” to “buy”.
The Western Prominence
While in mid of 2013 Taiwan Semiconductor Manufacturing Company (TSMC) took over Intel Corporation (NASDAQ:INTC) as world’s largest semiconductor chips seller for a while; Micron Technology, Inc. (NASDAQ:MU) with its acquisition of Japanese DRAM-maker Elpida gets into No. 2 position as DRAM chip-maker after Samsung. This acquisition directly puts Micron into bigger relationship with Apple Inc. (NASDAQ:AAPL) while gaining more pricing power and twice the production capacity.
Compared to Intel Corporation (NASDAQ:INTC)’s 20% year to date returns, the stock of Micron Technology, Inc. (NASDAQ:MU) has surged over 250% in the same period. Talking about hedge funds recently the managers at Bridgewater Associates also increased their stake in Micron Technology. With its forward P/E ratio of about 10, it still suggests potential investment opportunity.