Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, June 5, 2015

Article Excerpt

INTEL CORP., $31.84, Nasdaq symbol INTC, has agreed to acquire Altera Corp. (Nasdaq symbol ALTR). Altera specializes in chips called field programmable gate arrays (FPGAs) that users can program to perform specific tasks. This helps make server computers faster. The company focuses on chip design; it outsources manufacturing to other firms, including Intel. Intel plans to blend Altera’s FPGA technology with its current designs on a single server chip. The company feels this all-in-one system will be twice as fast as the current standard of using separate chips. That should give Intel an advantage over other chipmakers and cut its reliance on chips that power personal computers. Improved server chips will also help Intel profit as more businesses shift to a cloud-computing model. The company will pay $16.7 billion for Altera, which is equal to 11% of Intel’s $151.9-billion market cap (or the total value of all of its outstanding shares). It expects to complete the purchase in six to nine months. As of March…