Picked Intel in CAPS
I just opened a pick in Intel. I would like the stock to get a bit cheaper before buying it with real money, but I think it's a good buy at today's price.
Intel is a tech titan. AMD has provided only limited competition. In addition, the massive capital requirements for investing in fabrication plants have left AMD trailing Intel severely. AMD had a technological edge for a while, but continued to use inferior manufacturing processes that eventually left their processors slower.
In addition, Intel is currently yielding over 3.4%. Intel has grown its dividends faster than the S&P average over the last 3 years. I think this is going to be one of the new dividend stocks to watch going forward, since the banks have had a huge setback. Intel is in great financial shape, and it can afford to boost payouts.
There are things to worry about, but they aren't severe. Intel is somewhat cyclical, like all semi stocks. However, I think we're at the bottom of the cycle and Intel has a wide moat protecting its profitability. The advent of Netbooks may end up with a lot of notebook purchases being replaced by netbooks. That will hurt the margins of just about everyone in the tech sector. However, I think the equipment manufacturers like HP and Dell are going to be the worst off. Intel does make the processors, and while their margins will get pressured, Intel will still be better off than HP/Dell.