NEW YORK (Real Money) -- The holy grail of tech vs. the evil power of oil. That's what's duking it out this morning and, as long as the president stays away from the microphone, it could actually be a push.
What's the holy grail of tech? That's when Intel (INTC) lifts sales, earnings and gross margins because of enterprise demand. Anyone who has followed Intel as long as I have knows that when you get that mid-60s gross margin and more orders than you can handle then the leverage is monstrous and the guidance conservative, simply because it can't keep up with the momentum.
Yep, it's happening, and it is happening just in time because the downward pressure from Iraq threatens to take out the entire consumer/transport leadership, and this market's desperate for a leader.
Intel's moment is here not just because of demand pickup, but because CEO Brian Krzanich cut back capital spending at the right time and also because he is getting out of the extraneous businesses and focusing on growth markets. You, see Krzanich's a return to the old days at Intel, when it was run by brilliant engineers, not by sales or marketing people. He's the real deal, and this kind of older tech leadership, with low valuations, real profits and a potential for increased dividends, suits the market's bulls entirely. I really like him because he gets that Intel has to think like the younger generation that worships the handheld and plays games -- he's a gamer himself -- something I wouldn't know if my daughter hadn't told me to check in with Reddit.com daily to stop being so old.