Intel (Nasdaq:INTC) and AMD (NYSE:AMD) received positive comments from Deutsche Bank (NYSE:DB), although the financial institution gives Intel higher marks based on gain in graphics share and better exposure to Enterprise.
Deutsche said, "Looking back at 3Q10, despite sub-seasonal growth, x86 MPU revs hit a all-time record of $9.2bn, inventory levels remained low on a $ basis and ASPs pressure remained benign. After weathering this storm in solid fashion, we believe 4Q is tracking in-line with our ests, and now expect 2011 to be above our prior forecasts. Consequently, we are raising our x86 MPU rev forecast to +6% y/y (+1% prior) and increasing our ests for INTC & AMD. We continue to prefer Buy rated Intel given better Enterprise exposure and share gains in graphics."
Revenue estimates were raised by Deutsche on Intel from $44 billion to $46.5 billion for 2011 and EPS estimates were raised for 2011 from $1.85 to $2.00.
AMD revenue estimates for 2011 were raised from $6.31 billion to $6.62 billion and EPS estimates for 2011 from $0.17 to $0.40.
Intel closed Monday at $21.33, dropping slightly to $0.01, or 0.05 percent. The price target on them was raised from $25 to $25. A "Buy" rating is maintained on the chip maker.
AMD closed at $7.38, losing $0.17, or 2.25 percent. Deutsche has a price target of $8 on them, while maintaining a "Hold" rating on them.
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