Intel Corp (INTC)

Intel - Right now the industry leader with the fastest chip on the market fetching a handsome $1,000 each, so fast that most computers cannot run them which is pushing the industry to higher standards and a new generation of speed. INTC has coupled that with a move into the low end chip market as well that has been estimated could add another $500 million in sales in 2008. That may be over exuberant but the sales could match their high end chip profits. Most analysts predict that the tech sector could be the leader out of the current economic slump and INTC is probably among the best choices in the Tech sector. Off their 52wk lows at $18.05 and already at $25 they could surpass the last 52 wk high of $27.99 before years end and keep going.

Intel is the largest semiconductor company in the world. The company expends more on research than any chipmaker and has regained its competitive footing against its only competitor, AMD. Intel recently introduced a new line of processors which leapfrog AMD's offerings. INTC's new processors should be in high demand as the new Microsoft Vista O/S launch provides a catalyst for a computer upgrade cycle later in 2007.

The stock reminds me a lot of where CSCO was a year ago. INTC has now posted two strong quarters of earnings yet most analysts remain skeptical. Over the past two years, INTC has repurchased approximately $10 billion of shares, shrinking its share count by over 500 million shares. Despite this cash outlay, the company still has $6 billion of cash on the balance sheet. The stock currently trades at 11x 2007 estimated Free Cash Flow and 3x revenues, which are both at the low end of the company's historical trading range.

Intel is poised to become the bully again. In the laptop space, they have been with their Core microarchitecture for some time now, and the continued popularity of Apple products here suggest this isn't changing. In the desktop space, they compete on price where they have to, but have nearly zero competition from AMD on the high end. If AMD doesn't get their act together quickly, the desktop space could become Intel and no competition. In the server space, AMD is still quite the imposing figure thanks to their smarter bus design. If Intel releases Nehalem on time and it delivers on promises, then this stock could really take off. Winning back business in the server market will pressure AMD even more, something that I'm not sure AMD can handle for any significant period of time.

All that being said, even if Intel grows at 15%, the stock is cheap. With the small dividend (appx 2.5% yield) and the good balance sheet, I see little risk for this stock with potential for big upside if the cards fall into place.

The problem with Intel is that most all of it's investors believe that Intel new chips will allow them to regain their monopoly status and the MONOPOLY MARGINS that come with it.
However, this is not to be. The glory days for Intel are over just as the glory days for Dell are over. AMD now sells to every major PC and server manufacturer on the planet whereas just a couple of years ago, they had next to none.
So I am not saying Intel will plummet from here, but it now has to fight for every sale and it's margins are permanently lowered due to its newly found Duopoly with AMD. Lastly, even in late November, Intel still manufactures substantially more 32bit only Pentium 4 and Core Duo chips than the 64bit capable ones like the Core 2 Duos. With Vista released, only the uninformed consumers would even consider buying a 32bit based PC that is already obsolete. In comparison, 100% of AMD's chips are 64bit capable and they have been for years. Intel will continue to manufacture and sell 32bit only chips for atleast another 6 months. THAT'S ALOT OF OBSOLETE INVENTORY TO UNLOAD.

Reduced capacity of AMD to price war with Intel should set the stage for better chip profit margins this year, anticipating an upturn in consumer demand for PC upgrades in both mainboard and graphics arenas. I feel that the lull in this sector for the past months should shift toward more PC sales as consumer fears from financial markets ease and spending increases. INTEL is also near release of some new and well anticipated advancements.

I love this company and believe it's one of the few long term buy and hold stocks in the Technology sector.

But the company has peak gross margins right now and I see those crashing down hard. the Forward PE is probably too high right now... I like Intel at $10 though... just not at $14

A basic cyclical play that still has legs to go awhile. Consumers and Asian growth are driving current sales, but eventually corporations will have to go through a hardware upgrade cycle before their servers start crashing due to electronic failures. And then there's Windows 7, plus the fact that AMD is no longer performance competitive at any level of the market. Look for market share gains plus incremental growth at least through April/May 2010. If we manage to avoid a double dip recession in 1H 2010, it'll just keep going at least until the fed starts raising interest rates.

Look at it this way: even at the current price, you're earning a 2.7% dividend yield on a solid cyclical stock that's still on the upswing of the cycle.

SLUGGISH RIGHT NOW BUT HAS ENOUHG MONEY AND BRAINS TO STAY ON TOP

Intel is the gorilla. It has allies. It has money. It has made mistakes and has paid for them. It is sucking out all of the oxygen out of AMD's atmosphere without having the bullying image that Mr. Softy had a few years ago. The world needs it's product and it isn't resting on it's laurels. Nothing terribly exciting here, but the law of the jungle will most likely prevail.

Intel is an international company and dominate the chip market and its new products will sell better next year than this year. Brokerage firms and big banks are buying a lot recently, especially before the earning reporting season. The target price should be over $35.00 before December is over. These very stable, international companys' stock price is too low now. As China stock price will have another run to a new high before the end of this year, the intel stock looks too cheap now. I believe the stock price should go much high and the demand for intel stock will go up in about two weeks.

In my experience, Intel processors run both faster and cooler (way, way cooler) than their AMD counterparts. It's only a matter of time before Intel wins out.
Other than that, they have no real competition...

Cyclical stock. At beginning of new cycle so jump on. Cash hoard will allow them to outlast and squeeze competition. Duo 2 launch will regain market share from AMD. Up to 3 years wait to try to get appreciation at peak of current cycle.

Otellini seems to have found focus and new designs (Core 2) are going to win back market share. With superior process technology and balance sheet strength, they compare favorably with AMD right now. Valuation makes this a good place to buy.

Buying in while it is low and looking to sell when it's at the top of it's cycle - around $30. The P/E is historically very low, and INTC is such a powerhouse, it's not going to let little AMD take too much market share.

INTEL is at the verge of moving forward from a long period of adjustment within the company's business model. The future looks bright for this blue chip, so jump on aboard before it jumps 20% within 6-months. Look for a top at 38 in late 2007.

Core2 Duo line of processors is, faster, consume less power, and have greater frequency headroom than AMD K8-based processors.

Intel's stock and consumer sentiment is still down from Intel's P4 days of poor performing high-power usage chips.

With the release of the Core 2 Duo microprocessor last year, Intel blew the socks off (in performance, speed, power, temperature, you name it) all the competition (AMD) had to offer its. If doubling the performance of AMD's closest chip wasn't enough, they QUADRUPLED it just a few months later by releasing the worlds first Quad Core processor - the QX6800. With these releases Intel has once again become maker of the worlds fastest processor. They are actually so much faster than AMDs product that two of their highest end processors still don't top the performance of just one of Intel's Quad Cores. I don't see their lead lessening for at least the next 2 years, but most likely more.

Leading U.S. PC chip maker turns in a bad quarter and the shares start leaving hands. For real investers who like making money thats a GOOD thing! I am a cheapscape when it comes to buying stocks,but as most in the world on quality of personal items ,I want the best,and so do large company's all over the world. QUALITY will always outperform quanity over time in any market. Company will succeed going forward for those willing to buy on the cheap and hold.Trying to figure the bottom is not easy,but it appears to be getting close.Company raises dividend payment to share holders and I plan on becoming one.Sales around (38 billion+) Income around (7 billion) and moving foreward with Net Profit margin + 18.21% Income growth growth positive + 51.31% Sales growth + 8.35% Dept/Equity Ratio almost Zilch. Well balanced and easy to read books.Share price coming to a live bargain bend with nice dividend yield payout and growing y/y.Nice Forward P/E 13.02 analyst full year 2008 earnings estimates $1.53 full year 2009 $1.74 Nothing but + signs on this one and upside is unquestionable.

Compelling value play now that the product lineup is clearly superior to the competition. Decent growth could even be possible now that Otellini is at the helm and has a viable long-term platform strategy (look out for vPro in September). Biggest concern is that the roadmap is finally on track just as the economy is about to tank. I'm hoping for nominal appreciation in the next year (10-20%), but am more confident that 2008-2009 will witness a runup like we've seen in the past when Pentium III and Northwood were ruling the world.