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Intel Inches Higher After Kumar Calls It a Trading Buy

The analyst earlier this month sent the chipmaker's shares reeling with a negative call.

For now, Ashok Kumar is swinging his


(INTC) - Get Report

ax the other way.

Chipping Away
Intel over two weeks, top, and this year

The influential

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U.S. Bancorp Piper Jaffray

analyst had rocked the chipmaker earlier this month when he downgraded it to buy from strong buy, citing slowing demand from PC makers, who buy the lion's share of Intel's products. But he told Piper's internal sales staff in a voice mail this morning that the stock looks good for the short term, given the beating it has taken lately.

"The rest of the Street has recalibrated its expectations closer to ours," Kumar told

. "The stock is down 25% since we downgraded it. At some point, it becomes a trading buy." Kumar's firm hasn't underwritten for the maker of chips.

Kumar hasn't upgraded Intel, nor even issued a formal note. But shares of Intel were moving higher nonetheless, lately up $1.44, or 2.4%, to $61.81.