NEW YORK (TheStreet) -- Intel (INTC) - Get Intel Corporation Report, AMD (AMD) - Get Advanced Micro Devices, Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report gained on Monday following reports that Taiwanese factory TSMC (TSM) - Get Taiwan Semiconductor Manufacturing Co. Ltd. Report is seeing pull-in orders from chipmakers for the second half of January.
Shares of Intel gained 0.9% to $25.84, AMD share rose 1.7% to $3.85, and NVIDIA jumped 1.3% to $15.96.
The report comes from Digitimes and is a potential sign that the PC market will see more demand in early 2014. Increased chip orders could lead to more PC sales.
The Digitimes report comes after a recent IDC report that said PC shipments will likely drop by 3.8% in 2014. PC shipments dropped 10.1% in 2013.
TheStreet Ratings team rates Intel as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEL CORP (INTC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Although INTC's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. To add to this, INTC has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $5,731.00 million or 11.34% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.48%.
- The gross profit margin for INTEL CORP is currently very high, coming in at 76.84%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.87% trails the industry average.
- You can view the full analysis from the report here: INTC Ratings Report