Northland Capital Markets maintained its bullish stance on Intel Corporation expecting Apple to use the chipmaker’s modem for its upcoming next generation iPhones
Analysts at Northland Capital have reiterated a Market Perform rating on Intel Corporation (NASDAQ:INTC) along with a price target of $32 as they believe that the chipmaker has managed to win part of the modem business in Apple Inc.'s (NASDAQ:AAPL) upcoming next generation iPhones, scheduled to launch in September.
Apple has been evaluating Intel’s modem models for some time now. Analysts at Northland Capital expect Intel Corporation to capture roughly 50% of Apple’s modem business in the upcoming series of next generation iPhones. The analysts believe that the semiconductor giant can generate over $1 billion in CY16 by supplying the tech giant with its high-powered modems.
Intel Corporation has already acquired the programmable chipmaker Altera Corporation for $54 per share earlier this year in order to reduce its reliance on the weaker PC market. Moreover, Northland Capital's analysts have also highlighted ARM Holdings plc's (NASDAQ:ARMH) server momentum. E-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) is using servers based on the AMCC’s ARM based designs, and the analysts expect the Chinese company to expand its deployment of the ARM based servers with Cavium’s CPU.
Northland Capital believes that the design activity at all the webscale data center customers is increasing which creates more opportunity for ARM Holdings in the server market over the long term. Intel Corporation is down 0.21% at $28.92 in the opening hours of the trading session and has fallen approximately 21% compared to the Dow Jones Index that fell 4.5% this year.
No comments:
Post a Comment