This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Intel Is the Stock for the Intelligent Investor: Opinion


NEW YORK ( TheStreet) -- It is no secret that semiconductor giant Intel (INTC) has fallen out of favor somewhat with Wall Street analysts.

According to many, the company is no longer considered sexy and is perceived, in some circles, as unfit a tech company, giving way to rivals Qualcomm (QCOM), ARM Holdings (ARMH) and, to some extent, Texas Instruments (TXN).

It seems the highly anticipated death of the personal computer, an industry where Intel still has 80% market share, has provided the incentive for some investors to launch what I consider a preemptive strike against the company.

It's as if they want to say, "How dare you pretend to still be relevant." Except Intel is not pretending and the company is as much viable today as it has ever been. Investors need to only look in the right places.

Granted, I've become something of an apologist for the company, even though I don't own the stock. But Intel has all the makings of a successful turnaround story, one that earned $2.83 billion in its most recent quarter and beating analysts' estimates while meeting its revenue goals.

However, as it stands the prevailing debate centers on Intel's valuation. The concern for investors continues to be, what is impressive about a company that owns 80% of a dying market such as PCs. But is it?

I ask because I see from the company's earnings report that not only did Intel log sequential revenue growth of 5% but its PC revenue rose a respectable 4%. Granted, this is not the robust growth the company experienced in the 1990s as it rode the coattails of Microsoft (MSFT), but it does suggest some signs of life.

I am not at all suggesting the company is free and clear from any struggles. There are yet many to consider. But equally hidden are the many positives.

It is broadly understood that Intel underestimated the transition to smartphones and tablets to the extent that Apple (APPL) and Google (GOOG) have contributed immensely to growth of Qualcomm, ARM Holdings as well as Texas Instruments. I get that.

What I don't get is the idea that it is now too late for Intel to enter the mix. However, investors who take advantage of this lack of respect of a good company in a forward-looking market is what typically turns portfolios into winners.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs