Piper Jaffray Has Intel At Overweight, $34 Price Target (INTC)

Piper Jaffray rates shares of Intel Corporation (NASDAQ: INTC) at Overweight and has a $34 price target, as the investment bank expects computer shipments to be up 5% quarter over quarter.

In a note to clients, Piper Jaffray writes, "There is some concern among investors that Intel is a dinosaur, and that the PC era is giving way to thin clients and cloud computing making Intel and PCs irrelevant. We think that this is a superficial view of Intel. Thin clients and cloud computing represent challenges for Intel, but also opportunities. Intel architecture dominates servers in the cloud and as computing power shifts to the cloud INTC will see some benefit. We also note that legacy systems must be supported, and this will drive PC demand well into the future. AMD and NVDA do not have access to a completive manufacturing process driving more stable pricing and higher GM for Intel. We also expect Nokia to ship cell phones in Q1:11 and Sony to ship TVs in 2H:10 based on Intel silicon. We believe that the street underestimates the value of Intel's manufacturing prowess and progress in diversification."

Shares of Intel closed at $18.91 on Friday.

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