NEW YORK (TheStreet) -- Shares of Intel Corp. (INTC) are flat in pre-market trade after it was reported that the chipmaker, struggling to gain a foothold in mobile computing, is merging its mobile phone and tablet businesses with the division that makes chips for personal computers, Bloomberg reports.
The reorganization of the two units, which have been running at a loss, announced internally, will be completed early next year, a company spokesman said.
"The lines are blurring between PCs, tablets, phablets and phones. The idea is to accelerate the implementation and create some efficiency so that we can move even faster," the company said.
"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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."