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The Other Intel: Investors Ignore the Good

As great as the quarter was, it didn't appear to add much life to the stock. So now the question is, to what extent can Microsoft's (MSFT) highly anticipated Windows 8 launch remain as a catalyst for Intel? What's more, investors have been eager to play the PC product life cycle refresh ahead of the launch. It would seem that with Intel having an 80% share of the PC market, this would be a tremendous revenue boost.

Whether these expectations come to fruition is not the story. The issue continues to be how to fairly assess the company's current state and where it is likely heading. It does not appear as if the market is expecting a whole lot from Intel and instead has turned its attention to the aforementioned new chips on the block -- namely ARM Holdings, Qualcomm and Nvidia.

Bottom Line

What Intel needs is more time -- which seems to be the prevailing theme for once high fliers who are still valuable but have been unable to provide Wall Street with the growth that it craves. I think Intel will eventually re-capture its magic and prove that is can continue to increase its margins and outperform its rivals.

From an investment perspective, the stock is trading under its fair market value, which I have estimated to be right around $32. For value investors with patience, the stock should be considered a buy at these levels.

At the time of publication, the author was long AAPL.

Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.
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