NEW YORK (TheStreet) -- Shares of Intel Corp. (INTC) are up 0.59% to $34.34 in pre-market trade after it was reported that the company is close to announcing an investment in Chinese-government affiliated mobile chipmakers Spreadtrum Communications and RDA Microelectronics, its latest move to catch up in a smartphone chip industry led by Qualcomm (QCOM) , sources told Reuters.
It was unclear how much Intel is paying or what portion of the companies the U.S. chipmaker is buying. The acquisition could be made through Tsinghua Unigroup, a government-affiliated private equity firm controlled by Tsinghua University in Beijing, a sources said. Tsinghua Unigroup owns Spreadtrum and RDA, Reuters noted..
TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEL CORP (INTC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."