This Day On The Street
Continue to site
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

Intel Must Play Catch-Up Now

NEW YORK ( TheStreet) -- It's been a nice ride for investors of Intel (INTC - Get Report) who bought shares in late February after they'd fallen from above $23 in mid-January to nearly $20.

That 13% decline, in retrospect, was a terrific buying opportunity. Since late February shares rose to Tuesday's intraday high of $25.98, which equates to a nearly 30% gain if you were fortunate enough to have purchased it at $20.10.

The most recent stock-price-boosting hype surrounds Intel's newest mobile chips. Public announcements at the Computex conference in Taiwan that Samsung will use Intel's processors to power a version of its Android tables lifted shares almost 8% from the mid-day low last Friday.

Now it's time for cooler heads to prevail and to reconnect to the here and now. Having recently read a revealing cover story in the Sunday business section of The Oregonian newspaper with the catchy title "Intel's Choreographer" I realize the INTC exuberance has gotten a little ahead of itself.

The article revolved around an interview with Rani Borkar, the multi-talented vice president and general manager of Intel's Architecture Development Group. Up to the exciting news that Samsung will use Intel's 1.6-gigahertz dual-core processor in its 10.1-inch Galaxy Tab 3 tablet beginning next month, INTC had almost no presence in either the tablet or smartphone markets.

With the PC and laptop markets waning, INTC has been putting the pedal to the metal to play catch-up in creating competitive microprocessors that can compete with Apple's (APPL) preferred microprocessor company ARM Holdings (ARMH). The problem is that INTC is still far behind in this semiconductor race.

"What I told people is we've got to run fast," Borkar told the newspaper concerning Intel's daunting challenge. "If one shoe is missing, don't wait. We have got to run fast. We will figure that out as we go."

This tells investors about two important factors regarding INTC: It's been awakened and knows it has a do-or-die mission it must complete quickly, and it's flying by the seat of its pants and running a race even "if one shoe is missing."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
INTC $32.47 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs