Be that as it may, the company does not appear bothered by the obvious lack of respect. To that end, Intel has been reinvesting heavily in its business as well as in R&D core capabilities such as security as well as extending its process technology leadership. The latter initiative is one of the areas into which intelligent investors should start looking in order to fully appreciate the company's prospects, not only for the rest of this year but also well into the future.
From my calculations, these initiatives will undoubtedly place Intel at a significant advantage to the extent it will be able to leverage its current core of products and services beyond what its traditional areas into consumers can only imagine. What's more, it has not ceded victory to anyone in terms of the mobile devices market.
In its drive to compete, Intel is in the process of launching its own phone and tablet chips. Not only that, but it is also anticipating much success in the launch of Hewlett-Packard's (HPQ) new line of PCs called the Ultra Books -- aimed to steal some market share out of Apple's popular MacBook line which will be based on Intel's Ivy Bridge chips -- considered to be one of the most powerful it has ever produced.
As much as there is cause for optimism with Intel, the company's recovery will be no cakewalk. Qualcomm, ARM, Nvidia (NVDA) and even a name such as Broadcom (BRCM), which recently reported stellar earnings, are going to make certain that Intel understands the 1990s are over.What is not over is Intel's stellar management team, one that has made it abundantly clear that the company intends on maintaining its dominance among the chips. To that end, Intel has begun to lay down the foundation for its long-term success. That, along with stellar track record in terms of R&D, exceptional cash flow as well as top of the line manufacturing capabilities, should suggest to intelligent investors looking for value at a considerable discount that Intel should be on a short list of considerations. With a price-earnings ratio of 11 and trading at $26, there is yet considerable upside potential by at least 15% towards my fair market value of $30.
Follow @rsaintvilus At the time of publication, the author held was long AAPL and no position in any of the other stocks mentioned. This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts