This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Intel May Shine on Semiconductor Stocks

Stocks in this article: INTC ISIL ONNN AMD NVDA

NEW YORK ( TheStreet) -- Intel (INTC) reports fourth-quarter results after market close, with investors eyeing potential upside for other semiconductor stocks.

"While gross margins are likely to be the primary focus for Intel investors, we believe ramping Ultrabooks and tablets combined with an unseasonably weak Q4 could prompt above-seasonal Q1 revenue guidance from the PC bellwether," wrote Canaccord Genuity analyst Bobby Burleson, in a note released on Wednesday.

Companies that could benefit from healthy Intel guidance include power-management specialists Intersil (ISIL) and ON Semiconductor (ONNN), in addition to well-known chip makers AMD (AMD) and Nvidia (NVDA), according to Canaccord Genuity. Burleson adds that hard-drive maker Marvell (MRVL) could also see some short-term benefit.

Analysts surveyed by Thomson Reuters expect Intel to report fourth-quarter revenue of $13.53 billion and earnings of 45 cents a share. For the first quarter, analysts predict sales of $12.91 billion and earnings of 39 cents a share.

Nonetheless, there could still be big economic clouds hanging over Intel when it reports fourth-quarter results.

Intel cited weak demand in its third quarter, reflecting the ongoing PC slowdown. Tech research giant Gartner also highlighted this trend recently, noting that, year-over-year, PC shipments slumped 5% worldwide during the fourth quarter of 2012.

BMO Capital Markets analyst Ambrish Srivastava, however, thinks that the market for PC semiconductors has stabilized, but predicts ongoing volatility in the market for communications chips used in mobile devices.

Srivastava expects Intel to report fourth-quarter revenue of $13.6 billion and earnings of 46 cents a share. For the chip giant's fiscal first quarter, BMO's looking for sales of $13.1 billion and earnings of 38 cents a share.

RBC Capital Markets analyst Doug Freedman also expects Intel to post fourth-quarter upside, but acknowledges the company's continuing struggles in the PC market. "We still expect that sentiment will remain bearish after the call on lackluster PC demand and risk of slightly elevated inventories," he wrote. "Our recent checks in Asia suggest that after a small uptick at the end of November, December softened."

Investors will also be closely monitoring Intel's earnings conference call for information on the company's gross margins. The chip giant was recently upgraded to "buy" by Lazard Capital Markets, which cited the potential for improving gross margins.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs