The decline in Intel shares on the report that Intel's
stock dropped sharply on Monday after Bloomberg
reported that Apple would ditch Intel chips for an in-house
model on Mac computers. Its shares fell as much as 9 percent after the report
and then regained ground, ending the day down 6 percent Apple plans to stop using the
company's chips is a great buying opportunity, according to one Wall Street
firm..Stifel reiterated and recommended investors buy Intel shares on Monday's
weakness its buy rating for Intel shares, citing Apple's small market share in
the PC industry.
"The market is over reacting to Apple's announcement for using an
internally developed CPU for its Mac systems as early as 2020," analyst
Kevin Cassidy wrote in a note to clients entitled "Potential Apple Move
Not a Major Threat to Intel" on Monday. "According to IDC, Apple had
7.3% traditional PC unit market share in 4Q17."
Cassidy reaffirmed his $53 price target for Intel shares.
He
estimated Apple generated only 4 percent of Intel's revenue last year and less
than 1 percent of its profits.
"We
do not expect any other PC manufacturers will consider designing its own
CPUs," he wrote.