Intel Stock Rises As Analyst Calls PC Chip Bottom

A Wall Street analyst on Thursday called a cyclical bottom for chipmakers tied to personal computers and smartphones. He upgraded Intel (INTC) stock along with Qualcomm (QCOM) and Skyworks Solutions (SWKS).

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Susquehanna Financial Group analyst Christopher Rolland raised his rating on Intel stock to neutral from negative. Plus, he upgraded Qualcomm and Skyworks to positive from neutral.

“We believe the acute portion of the semiconductor downcycle for the handset, PC and consumer end markets has passed,” Rolland said in a note to clients. He added that the industrial and automotive chip markets have yet to correct.

Rolland predicted that inventory levels soon will normalize and demand will pick up in the segment covering the PC and handset markets.

“That said, we will wait for Part II of this upgrade, which will include industrial, auto and broad-based stocks, at a later date,” he said.

Intel Stock, Other Chip Stocks Rise

In afternoon trading on the stock market today, Intel stock jumped 5% to 29.84. Qualcomm stock advanced 3.6% to 119.65. Skyworks stock increased 2.2% to 114.20.

Elsewhere in semiconductor stocks, Advanced Micro Devices (AMD) extended its breakout on Thursday. The PC and server chipmaker saw its shares rise 2.6% on Wednesday. AMD stock broke out of a flat base with a buy point of 89.04, according to IBD MarketSmith charts.

In midday trades on Thursday, AMD stock increased 6.5% to 95.46. AMD has outperformed rival Intel stock lately, thanks to market share gains.

The Philadelphia semiconductor index, known as SOX, climbed 2.5% on Thursday. Year to date, it is up 20.5%. That compares with a 2.6% rise for the S&P 500 index. The SOX includes the 30 largest semiconductor stocks traded in the U.S.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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