By gaining market share, Intel could offset any shortfalls from a weaker personal computer market and still boost its earnings, according to an article in its February 4 edition.
NEW YORK (Reuters) - Intel Corp <INTC.O>, the world's largest chip maker will probably generate double-digit annual earnings growth over the next several years and extend its lead over rival Advanced Micro Devices Inc <AMD.N>, especially if the economy falters, Barron's said.
By gaining market share, Intel could offset any shortfalls from a weaker personal computer market and still boost its earnings, according to an article in its February 4 edition.
Intel shares on Friday closed at about $21.77 on the Nasdaq, while those of AMD closed at $8 on the New York Stock Exchange.
Intel trades at about 15 times the $1.40 per share that it is expected to earn this year, Barron's said. If the shares can climb back to an 18 multiple, they would appreciate about 16 percent, Barron's said.
!ADVERTISEMENT!Price cuts helped Intel increase its share of personal computer microprocessors shipped to 77.5 percent from 75 last year while AMD's share slipped to 22 percent from 23 percent, Barron's said.
"Intel will gain more share over times, especially in mobile PCs" and corporate PC's, Gartner analyst Mikako Kitagawa said, according to Barron's.
(Editing by Maureen Bavdek)
