INTC, AMD Benefiting From Improved Trends in The PC Market

The Federal Trade Commission (FTC)(FREE stock trend analysis) has made the first move towards filing a lawsuit against Intel (NASDAQ: INTC)(FREE stock trend analysis) on account of the company’s anti-competitive practices in the MPU and graphics arena. The charges against INTC include selling its Atom processor at a significant discount when it is bundled with its own chipsets. According to Barclays Capital, the FTC has brought charges under Section 5 and hence INTC does not face any monetary sanctions. Analysts expect the move made by the FTC to create an overhang over INTC’s shares for the next 12 months. However, analysts at Barclays Capital maintain their “equal weight” rating on Intel on the back of an improved outlook of the overall PC market. Analysts at Barclays Capital maintain their “overweight” rating on Advanced Micro Devices (NYSE: AMD)(FREE stock trend analysis). Barclays Capital mentions that AMD has seen robust trends quarter-to-date and there is a possibility of the company exceeding the revenue estimates for the December quarter. Although AMD continues to face stiff competition in the long term, it is likely to strengthen its position in value notebooks and graphics, Barclays Capital adds. Meanwhile, Nvidia (NASDAQ: NVDA)(FREE stock trend analysis) is to launch its new Tegra products in January. The analysts do not expect the company to exceed the revenue estimates for the month, considering the current supply constraint. Semiconductor HOLDRs (AMEX: SMH)(FREE stock trend analysis) has lost 1.33% to trade at $26.67 today.