- Intel Shares Surge on AWS Deal
- HPE Stock Gains on Analyst Upgrade
- Microsoft Announces $60 B Share Buyback Program
Three tech giants - Intel, Hewlett Packard Enterprise (HPE), and Microsoft - have made significant announcements affecting their stocks.
Intel Shares Surge on AWS Deal
Intel Corporation (INTC) shares surged 6.81% to $22.33 in morning trading, buoyed by a major deal with Amazon Web Services (AWS). The chipmaker announced it will produce custom AI chips for AWS, marking a significant milestone for Intel’s struggling foundry business. This multibillion-dollar agreement is seen as a vote of confidence in Intel’s capabilities and could potentially add over $3 billion to the company’s market value. Despite a challenging year with a year-to-date return of -54.97%, this deal offers a glimmer of hope for Intel’s turnaround efforts.
HPE Stock Gains on Analyst Upgrade
Hewlett Packard Enterprise (HPE) saw its stock climb 5.92% to $18.25 following an analyst upgrade from Bank of America. BofA raised its rating on HPE to Buy from Neutral and increased the price target to $24 from $21. The upgrade comes as HPE moves forward with its $14 billion acquisition of Juniper Networks, a deal expected to yield significant cost synergies. HPE’s recent Q3 financial report highlighted strong AI server revenues of $1.3 billion and a substantial backlog, indicating growing momentum in the AI infrastructure market.
Microsoft Announces $60 B Share Buyback Program
Microsoft Corporation (MSFT) shares rose 1.24% to $436.67 after the tech giant announced a new $60 billion share buyback program and a 10% increase in its quarterly dividend. The company’s board approved a quarterly dividend of $0.83 per share, up from $0.75 in the previous quarter. Microsoft continues to invest heavily in AI infrastructure, with capital spending up 77.6% in the most recent quarter. The company’s year-to-date return stands at an impressive 16.75%, reflecting investor confidence in its AI-driven growth strategy.
All three companies continue to actively develop and adapt to the rapidly changing tech sector, taking significant steps to strengthen their market positions.
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