Intel Corporation shares fell more than 8% on Monday amid reports that Apple Inc. plans to use its own chips in Macs beginning as early as 2020. While the initiative remains in the early stages, Apple has long planned to streamline the development of its components to prevent supply chain issues and optimize performance. Apple shares also moved marginally lower following the reports.
Despite the seemingly bearish news, Stifel analysts reminded investors that Apple represents only 4% of Intel’s revenue and less than 1% of its profits. The research firm maintained its Buy rating on Intel stock and reaffirmed its $53.00 price target, which represents a 7.5% premium to the current market price. In addition, the analyst noted that Apple held just 7.3% of the traditional PC market during the fourth quarter. (See also: Analysts Say Reaction to Apple Ditching Intel Is Overblown.)
Intel shares broke down from support following reports that Apple would build its own processors, but traders will be watching these levels. …read more
Read more here: Intel Stock Moves Lower After Apple Drops Contract
Category: INTC, AAPL