Story updated at 9:50 a.m. to reflect market activity.
Shares of Intel gained 0.3% to $34.36 in morning trading.
The analyst firm also raised its EPS estimates for the chipmaker through 2016. Bank of America/Merrill Lynch analysts expect Intel to report earnings of $2.16 a share for full year 2014, up from its previous estimates of $2.14 a share. The firm raised its EPS estimates for Intel to $2.39 for 2015 and $2.65 for 2016, up from $2.24 and $2.47 a share, respectively.
"As long as global PCs grow/decline within a 2-3% YoY range, we estimate Intel can sustain at-least flat operating income in its PC division," Bank of America/Merrill Lynch analysts wrote. "Indeed we see PCs stabilizing due to enterprise demand, due to a replacement cycle of the 600mn+ PCs that are 4+ years old, and due to new/attractive designs that provide superior productivity than tablets."
Separately, 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."You can view the full analysis from the report here: INTC Ratings Report