NEW YORK (TheStreet) -- Intel (INTC) was rising 0.72% to $25.72 on Monday afternoon after Goldman Sachs said it expects the semiconductor maker's fourth-quarter results to be greater than the midpoint of guidance.
Goldman met with Intel President Renee James at last week's Consumer Electronics Show and said Monday that it anticipates the company's fourth-quarter results to come in greater than the midpoint of guidance, but also noted that gross margin is likely to decline in the first quarter of the fiscal year.
Goldman laid out its reasoning for the analysis with the following four points:
"1. We believe the new management team is more open to differing perspectives and is more attuned to market dynamics.
2. We believe Intel's goal is to use mobile unit volume to fill its fabs, which would raise utilization rates and drive higher GM.
3. Intel believes it can succeed in mobile by providing the lowest power processor, but we continue to believe its core advantage is in segments that require high processing power.
4. We believe Intel should pursue its open foundry strategy over its mobile strategy, given its edge in manufacturing."
Intel hit an intraday high Monday of $25.99; its one-year high is $26.04.
TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:
"We rate INTEL CORP (INTC) a BUY. This is driven by some important positives, 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."