Investing.com -- Intel (NASDAQ:INTC) delivered better-than-expected guidance for the current quarter after third-quarter earnings markedly beat analyst estimates amid signs PC demand has bottomed.
Intel rose nearly 8% in pre-market Friday trading.
Intel reported adjusted EPS of $0.41 on revenue of $14.2 billion. Analysts polled by Investing.com anticipated EPS of $0.22 on revenue of $13.53 billion.
Client Computing Group, which mainly consists of the company's PC processor and related component business, reported a 3% decline in revenue.
Looking ahead to Q4, the chipmaker forecasts adjusted EPS of $0.44 on revenue between $14.6B and $15.6B, compared with estimates for EPS of $0.33 on revenue of $14.36B.
HSBC analysts used the opportunity to upgrade the rating on Intel to Hold from Reduce with a price target of $33 per share.
"While we still have concerns over the overall datacentre recovery, we upgrade Intel to Hold as we expect significant earnings revisions from better execution and improving PC outlook to lead to a re-rating," the analysts said.
Bernstein analysts said the results "were quite strong." As a result, they lifted the price target to $36 per share.
"Overall the company does appear to have turned the corner on the worst of it, and (perhaps) a PC-dominated narrative might be enough to carry it for the moment. We admit to warming (slightly) to the story though there remains enough wood to chop here to keep us sidelined for now."
Additional reporting by Senad Karaahmetovic