Intel Corp. shares rose nearly 4 per cent on Wednesday, a day after the chipmaker forecast an upbeat fourth quarter that underlined its strength in emerging markets, and prompted at least seven brokerages to raise their price target on the stock.
On Tuesday, Intel forecast fourth-quarter revenue above Wall Street's expectations, defying concerns that tablets and a shaky economy are eating into demand for personal computers.
Continued traction in developing economies, along with continued momentum in use of Cloud-related services and Windows 8's potential will be the catalysts for Intel's growth in 2012, Robert W. Baird said in a note to clients.
Baird, which maintained its "outperform" rating on Intel, also expects the company to benefit from PC demand in developing economies. It raised its price target on the stock to $32 (U.S.) from $29.
Intel shares were up 3.8 per cent at $24.30 in morning Nasdaq trading.
JPMorgan analysts said that although Intel's forecast was above Wall Street estimates, it was below normal seasonality due to a slowdown in Europe and mature markets, and customers maintaining lean inventory levels.
Intel's processors are used in about 80 per cent of the world's PCs.
The Santa Clara, California-based company also posted third-quarter earnings that beat expectations and said developing countries like China were fuelling expansion.
Analysts say Intel also benefited from supply shortages at rival Advanced Micro Devices .