Intel wowed the street on Tuesday with much better than expected numbers. As Reuters reports:
SAN FRANCISCO (Reuters) – Intel Corp’s quarterly results and outlook blew past Wall Street forecasts on better-than-expected consumer demand for PCs, especially in Asia, setting an auspicious tone for the technology sector. Shares of Intel, the world’s largest chipmaker, jumped 8 percent on the report, driving Standard & Poor’s 500 stock index futures sharply higher and bolstering technology shares such as arch rival Advanced Micro Devices Inc. Intel projected third-quarter revenue at $8.1 billion to $8.9 billion, compared with analysts’ average forecast of $7.8 billion, according to Reuters Estimates.
INTC stock, meanwhile, having closed the Tuesday session at $16.83, was last indicated in after hours trade at a price of around $18.02.
Interestingly, here’s the action in July Intel call options on Tuesday. That’s before Intel’s results were released after the close. As can be seen a not insubstantial level of volume went through the $17 call option in the day.
For those curious, that $17 call option is now more than a dollar in the money, meaning anyone who entered that trade yesterday — which at the time was still seen as somewhat of a risky bet — would be pretty happy with those efforts. Very prescient indeed. (H/T Jamie Chisholm).
Related link:
Intel signals revival in chip demand – FT