Intel shares gain for a fourth straight session on Tuesday, tech giant acquires Barefoot Networks for an undisclosed amount

June 12, 2019 9:18 am

Intel Corp said on Tuesday that it had agreed to acquire Barefoot Networks, an emerging leader in Ethernet switch silicon and software for use in data centers. However, the terms of the deal remained undisclosed.

Barefoot Networks is expected to aid Intel’s data center group in meeting the fast-changing needs of its hyperscale cloud customers.

Intel shares closed higher for a fourth consecutive trading session on NASDAQ on Tuesday. The stock edged up 0.11% ($0.05) to $46.85, after touching an intraday high at $47.30, or a price level not seen since May 9th ($48.29).

Shares of Intel Corporation have retreated 0.17% so far in 2019 compared with a 15.11% gain for the benchmark index, S&P 500 (SPX).

In 2018, Intel’s stock went up 1.67%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

Once the deal is finalized, Barefoot Networks is expected to support Intel’s focus on end-to-end cloud networking and infrastructure leadership, while also enabling the tech giant to keep delivering on new workloads, experiences and capabilities for its data center clients.

Headed by Dr. Craig Barratt and headquartered in Santa Clara, California, Barefoot Networks is to add deep expertise in areas such as cloud network architectures, switch silicon development, P4-programmable high-speed data paths, P4 compilers, network telemetry, driver software and computational networking, Intel said.

The flagship product of Barefoot Networks is known as Tofino and uses Protocol Independent Switch Architecture.

According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Intel Corporation’s stock price, have a median target of $54.00, with a high estimate of $75.00 and a low estimate of $38.00. The median estimate represents a 15.26% upside compared to the closing price of $46.85 on June 11th.

The same media also reported that 16 out of 37 surveyed investment analysts had rated Intel Corporation’s stock as “Hold”, while 11 – as “Buy”. On the other hand, 7 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Intel Corporation (INTC) are presented as follows:

Central Pivot Point – $45.12
R1 – $47.03
R2 – $48.04
R3 – $49.95
R4 – $51.87

S1 – $44.11
S2 – $42.20
S3 – $41.19
S4 – $40.19

Where to Trade

BinaryTribune is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action, Binary Options and Social Trading.

Related