Updated from 9:26 a.m. EST to include further details on JPMorgan reasoning and to update stock price.
"We believe the PC market will remain relatively stable in 2014, and we believe Intel's new CEO [Brian Krzanich] will continue to provide realistic guidance on focus on areas where Intel has an advantage -- thereby improving margins and returns," wrote analyst Christopher Danely in the report.
On Monday, Goldman Sachs said it expects the semiconductor maker's fourth-quarter results to be greater than the midpoint of guidance.
Analysts polled by Thomson Reuters anticipate net income of 52 cents a share on $13.72 billion in revenue for the fourth quarter ended December 2013.
By early afternoon, shares had gained 3.4% to $26.36.
TheStreet Ratings team reiterates INTEL CORP as a Buy with a ratings score of B. The team has this to say about their 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."