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.

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