SAN FRANCISCO Intel Corp. is expected to raise its fourth quarter revenue outlook based on solid PC demand in October and November, according to Citigroup analyst Glen Yeung.
In a research note published Sunday (Nov. 27), Yeung said he expects the world's leading semiconductor manufacturer to increase the low end of its fourth quarter guidance from $10.2 billion to $10.5 billion. Intel had said it expected fourth quarter revenue to be between $10.2 billion and $10.8 billion. Yeung expects the company to up quarterly revenue expectations to between $10.5 billion and $10.7 billion.
Yeung said he expects the company to increase its 2006 year-over-year revenue growth forecast, which currently stands at 7.6 percent. Yeung said he believes the current 2006 growth forecast underestimates the earnings from Intel's dealings with Apple Computer. He also cited stable-to-rising average selling prices, server share regain and a generally solid PC unit growth environment as reasons the company would raise 2006 growth expectations.
Yeung reiterated a $32 price target for Intel shares.
Buoyed by the report from Yeung, Intel's stock price climbed 5 cents, or 0.2 percent, to close at $26.86 Monday, a day when the Nasdaq declined 1.04 percent overall. Intel's stock price peaked at $27.10 earlier in the day.