NEW YORK (AP) — A Citi analyst on Friday upgraded Intel Corp. to "Buy" from "Neutral," saying he's more confident that PC demand has stabilized.
Glen Yeung said that while consumer PC demand, especially in emerging markets, remains weak, the microchip company's 2014 guidance for PC shipments is conservative enough that its results won't fall significantly short and could even be better than expected.
Intel expects a 5 percent decline in PC units next year, which Yeung said translates into an 8 percent to 10 percent drop in consumer PCs, larger than his investment bank's prediction of 7 percent.
The analyst said that with part of the holiday shopping season still to come, some near-term risk still exists, but he added that the company's stock has underperformed the overall market in recent weeks, so those worries might already be priced in.
In premarket trading, Intel shares rose 43 cents, or 1.8 percent, to $24.69 with about 90 minutes to go before the market open.