Firm tipped as buy, FTC won’t biteA refusal by Intel to license its buses and X86 IP led the FTC to begin its investigation into the chip giant, according to a financial analyst.
In a note to its clients, Broadpoint.Amtech said that the FTC investigation is unlikely to have any material effects on Intel’s business, and won’t give an uptick to Nvidia eithr.
The financial analysts are recommending “buy” on Intel’s stocks (tick: INTC).
The note said that Intel’s defense is underestimated and believe that Intel has a far stronger case than is generally believe. The note added that “cloudy issues” over the FTC lawsuit could provide gains for investors as it believes the chip giant will prevail.
Further, the note says that it anticipates the chipset market will be squeezed because OEMs will move towards integrated CPU+GPU. That will affect Nvidia’s ability to compete.
It’s recommending its investor to keep an eye on the squeeze on Intel’s stock price because of the FTC lawsuit and put their money in when the price appears weak.
