Intel Surprises Investors with New Acquisition, Micron Technology Looks to Parallel Sector Rise

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Accesswire 14-Mar-2017 9:30 AM
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NEW YORK, NY / ACCESSWIRE / March 14, 2017 / The microprocessor industry has been in a state of flux over the past decade, and technologies such as artificial intelligence (AI) that are at the heart of driverless cars are challenging the more traditional computer and mobile technology chip makers. The question for the stalwarts is how they will adjust to the upcoming changes.
RDI Initiates Coverage:
Intel Corporation https://ub.rdinvesting.com/news/?ticker=INTC
Micron Technology, Inc. https://ub.rdinvesting.com/news/?ticker=MU
Intel gave investors a mild tremor this morning as they woke up and found the company had purchased MobilEye, a company that develops driver assistance systems and systems for driverless cars. The stock dropped 2 percent to $35.16 a share on Monday's close. The 75 cent per share loss was the result of more than a few investors wondering whether the $15.3 billion purchase price has real value for money or Intel has overpaid. Intel competitor NVidia snatched the Tesla contract away from MobilEye, apparently attracting the attention of the microchip leader. It makes sense for Intel to diversify into futuristic markets, but for investors the question is how long will they have to wait to realize a profit on Intel's expansion. Some analysts are already claiming the acquisition is "a mistake."
Access RDI's Intel Corporation Research Report at: https://ub.rdinvesting.com/news/?ticker=INTC
Micron Technology investors saw its stock price rise by 52 cents per share, an increase of just over 2 percent. The closing price of $25.70 is said to be the result of a growing interest in the chip manufacturing sector, as fellow chip maker AMD will be added to the Standard and Poor's stock index next week. Schaeffer's research noticed significant activity with call options with 10 day call to put ratio of 4.52 on average on three major exchanges, as the stock price has not been over $26 a share since June 2015. Traders are betting that the general trend of increasing prices for chip technology stocks will catch up with Micron Technology sooner than later. There are a number of brokerage firm giving Micron a "buy" signal on a projected 12 month average target of $32.79 a share, according to The Wall Street Jounal.
Access RDI's Micron Technology Research Report at: https://ub.rdinvesting.com/news/?ticker=MU
Our Actionable Research on Intel Corporation (NASDAQ: INTC) and Micron Technology, Inc. (NASDAQ: MU) can be downloaded free of charge at Research Driven Investing.
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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.
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SOURCE: RDInvesting.com