This Day On The Street
Continue to site
ADVERTISEMENT
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

Worries Over Intel Are Overblown

NEW YORK ( TheStreet) -- Although I no longer own the stock, I've found myself coming to Intel's (INTC - Get Report) defense on a pretty regular basis.

There seems to be a concerted effort by the bears to discredit the company's recovery attempts. While I don't disagree that it has a strong reliance on the PC industry, I also can't ignore how much this fact has become overstated.

There's no denying that Intel has blown some opportunities in the mobile evolution.

I will also grant that the company has been slow to respond to the advancements made by rivals like Qualcomm (QCOM - Get Report) and ARM Holdings (ARMH). While Intel does rely on the PC market for a significant portion of its revenue, the company's mobile advancements, albeit modest, is a step in the right direction.

And it's narrow-minded to believe that the company's attempts to grow mobile market share are futile solely based on recently quarterly performances.

But don't mistake my support for misguided optimism. I'm not holding my breath expecting Intel to regain its dominance level of the 90's. But solely from an investment perspective, the stock looks cheap.

As any smart investor should, I've begun to adjust my expectations, given that the company has begun to think differently.
[Read: <a target="blank" data-add-tracking="true" href="http://www.mainstreet.com/article/smart-spending/budgeting/will-automatic-bill-pay-ruin-your-finances"><em>Will Automatic Bill Pay Ruin Your Finances?</em></a>]

In that regard, it didn't matter as much to me that the company posted a 5% revenue decline in the recent quarter. Bears, on the other hand, have taken a different perspective -- using the revenue decline as fodder for their arguments. But given the dire state of the PC industry, it's foolish to continue to expect an immediate turnaround from this company.

Plus, given the progress that the company continues to make on the operating side of its business, it is clear that Intel still possess some distinct advantages.

Amid a highly competitive environment where others like NVIDIA (NVDA) and Advanced Micro Devices (AMD) are also working to recover, the fact that Intel is still meeting expectations on margins, which grew sequentially, is impressive. And management expects more margin expansion in the next quarter.
1 of 3

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
INTC $28.42 2.50%
MSFT $43.90 0.00%
QCOM $57.49 0.23%
AAPL $112.23 -0.61%
FB $91.03 1.40%

Markets

Chart of I:DJI
DOW 16,616.15 -38.62 -0.23%
S&P 500 1,982.82 -4.84 -0.24%
NASDAQ 4,802.4130 -10.2950 -0.21%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs