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Intel Is the Stock for the Intelligent Investor: Opinion

NEW YORK ( TheStreet) -- It is no secret that semiconductor giant Intel (INTC - Get Report) 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.
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