Chipmaker Intel raised its forecasts after close on Thursday last week. It upped its Q2 revenue forecasts by c. 7%, as well as disclosed stronger profit margins. Furthermore management now guides for growth in 2014 vs. earlier guidance of a flat year.
The update lead to a strong spike in sentiment on Friday, as well as a 6% share price reaction. FactSet analysts forecasts for the company, before the update, were 5-7% below the newer numbers, explaining a large part of the sharp jumps in sentiment as well as share price.
Today saw another positive sentiment reaction, driven by traders updating their views (and positions) on the share, given the positive surprise of last week. Secondly Intel is seen as instrumental in the upcoming wave of “Internet of Things”.
— Jacob Joseph (@cometkarov)June 17, 2014