Intel (INTC) Stock Up on Potential iPhone Deal
NEW YORK (TheStreet) -- Intel (INTC) - Get Report stock is climbing 0.55% to $30.15 in late-morning trading on Wednesday, as the technology giant will supply as much as 50% of modem chip orders for the new Apple (AAPL) iPhones scheduled to launch in September, sources told Digitimes.
Analysts had estimated that Intel could supply up to 30% of modems in the upcoming iPhone 7, Barron's reports. Apple is expected to sell between $150 million and $200 million worth of the units during 2017.
But certain analysts are wary of the Digitimes report.
"We are skeptical that Intel's share will be anywhere near this given the unproven nature of the company's modem (we believe the 7730)," Rod Hall, an analyst at JPMorgan, wrote in a note. "However, persistent reports like this look likely to act as a headwind for QCOM until September when we get a better idea of what SKUs Intel is in if any."
Shares of Qualcomm (QCOM), which has been Apple's main supplier, are up 2.15% to $53.11 this morning.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Intel's strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in net income and growth in earnings per share outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: INTC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
