In this week’s Barron’s, tech investing columnist Mark Veverka lays out the bull case for Intel (Nasdaq: INTC), which includes these main points:
- Intel has been suffering from a lack of leadership role in the high-growth smartphone and tablet processor markets; that should soon come to an end with new design wins
- Continued leadership in PC processors, including the high growth Ultrabook area
- Massive cloud computing growth
- Strength in high-performance, big data applications
- Cash-rich, with $7.1 billion in net cash and investments, yet pays a current 3.5% dividend and has bought back stock
- A “four year lead” in manufacturing process technology
Leaning, as usual, on a third party investor’s assessment, Barron’s concludes that “Intel shares should get revalued as it powers more smartphones and other mobile devices. Two-year upside is $38-$40, about 50% above current levels.”
Covestor models that are long Intel with over 5% allocation as of end of day 5/25/12:
- 401 Advisor – Dividend and Income Plus
- Capital Ideas – Macro Plus Income
- Leif Erikson – Performance with Protection
- James Roberts – Fortune’s Most Admired and Stock Diagnostics
