Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, October 23, 2020

Article Excerpt

INTEL CORP., $48.20, Nasdaq symbol INTC, is a buy. The company is the world’s leading maker of computer chips: its products power 90% of all personal computers and more than 80% of all datacentres. Intel is now selling its flash memory chip business to South Korea’s SK Hynix Inc. Manufacturers of mobile phones, digital cameras and other devices use flash chips to retain information without power. The flash business has suffered in the past few years, as strong competition has hurt selling prices. The company will receive an initial payment of $7 billion in late 2021, assuming it can secure the necessary government approvals for the sale. When the sale does close—probably in 2025—Intel will receive an additional $2 billion. However, the stock dropped 11% after the company reported lower demand from corporations and governments for chips that power datacentres. That offset better sales of PC chips as the COVID-19 pandemic spurred demand for new laptop computers from people working from home. In the quarter…