Intel shares rise nearly 5% before trading amid reports of possible price increases
In the United States, Intel shares rose nearly 5% before trading began following a report by Taiwanese publication DigiTimes that the company may raise processor prices by another 10% this fall. As CNBC Top News reports, Intel is focused on improving gross margins rather than increasing market share.
Intel and the artificial intelligence sector
Northland Securities analysts upgraded their rating on Intel shares from “hold” to “buy.” They cited significant progress in the company’s recovery, as well as the importance of Intel Foundry for U.S. national security.
Market participants are also discussing OpenAI’s new Astra model. Melius Research analyst Ben Reitzes said it indicates OpenAI’s return to a strong position and could support the chip and artificial intelligence equipment sector. Nvidia CEO Jensen Huang wrote on X that Astra was trained on 100,000 Grace Blackwell graphics processing units, with another 400,000 GPUs expected to be commissioned next.
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Oil refining and logistics
UBS raised its price targets for shares of U.S. oil refining companies: Marathon Petroleum to $405 from $321, Phillips 66 to $300 from $235, and Valero to $450 from $355. The bank maintained “buy” ratings for all three companies. Analysts linked interest in the sector to high oil refining margins; diesel crack spreads, which are an indicator of refiners’ profitability, reached an all-time high last week.
Citi upgraded its ratings for Old Dominion Freight Line and freight brokerage firm C.H. Robinson from “hold” to “buy.” The bank believes that the summer decline in share prices improved the risk-to-potential-return ratio, while a turning point in the freight cycle remains on track to materialize. JPMorgan initiated coverage of FedEx Freight with a “buy” rating and a $160 price target, expecting improved profitability and service quality after the company’s separation from FedEx Corp.
In the broader market, S&P 500 futures were slightly lower, while Nasdaq futures were rising. Oil prices increased after hostilities in the Middle East during the extended weekend: Brent at one point exceeded $99 per barrel. According to CME Group FedWatch, traders assessed the probability of a Federal Reserve rate increase at next week’s meeting at 60% after a strong employment report.
