Market Overview

Chip Stocks Mostly Soar As Intel Raises Q3 Guidance

Chip Stocks Mostly Soar As Intel Raises Q3 Guidance

Shares of chip-based companies remain strong on Friday after Intel Corporation (NASDAQ: INTC) boosted its revenue outlook for the third quarter. The revised forecast is significantly above the Street estimates.

Intel boosted its revenue forecast from $14.9 billion (plus or minus $500 million) to $15.6 billion (plus or minus $300 million). The company cited improving PC demand for the upward revision in its guidance. Street analysts are looking for $14.9 billion revenue.

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The chip company is also forecasting increased GAAP margin of 62 percent, plus or minus a couple of points, compared to midpoint of 60 percent projected earlier. The company also lifted its adjusted gross margin by one point to 63 percent, plus or minus a couple of points, from midpoint of 62 percent predicted earlier.

Intel expects R&D and MG&A spending to be $100 million more than its initial estimation of about $5.1 billion. The company expects to suffer a loss of about $125 million from equity invests, interest and other income.

Following this, chip stocks' share performances are given below:

  • Advanced Micro Devices, Inc. (NASDAQ: AMD) was up 0.5 percent at $6.05.
  • Intel was up 2.75 percent at $37.56.
  • Micron Technology, Inc. (NASDAQ: MU) was up 0.89 percent at $17.60.
  • NVIDIA Corporation (NASDAQ: NVDA) was flat at $62.68.
  • Texas Instruments Incorporated (NASDAQ: TXN) was down 0.29 percent at $69.02.

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