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!

Worries Over Intel Are Overblown


NEW YORK ( TheStreet) -- Although I no longer own the stock, I've found myself coming to Intel's (INTC) 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) 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.

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

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