Intel - next leg up to $30
Intel has been one of those stocks that has been pretty stagnant the last 5 years or so. It survived the first bubble wave (mainly because it has a real tangible product) but the stock really didn't go anywhere fast.
Last year when they were restructuring, I decided to initiate a small position in the company. The main reason being was they were still clearly leading in the AMD (AMD) vs Intel (INTC) war and their products, although more expensive than AMD, were justifiable because the performance was higher. Not too long after, AMD decided to purchase ATI and the reaction was mixed on the street. Tackling so much debt in order to purchase a company seemed like a desperate move on AMD's part. In the last year, AMD has still been struggling with a high debt balance sheet and is forecasting that they will return to profitability in 2008.
So why do I like Intel right now? They have a lot of freedom. With AMD crippled with massive debt, it leaves Intel the ability to leave AMD in the dust.
I am a big fan of Apple (AAPL) products. One way of taking advantage of Apple's rising share of the computer market is to play Intel. It's basically a safer more conservative way of taking advantage of the success.
I like the momentum that Intel has. Although, the biggest risk right now is a recession in the USA. If that happens, spending in the technology field will no doubt suffer and Intel's earnings could be affected.
But if I was a betting man, between AMD and Intel, I would definitely put my money with Intel.
Disclosure: I own Intel and do no own AMD. If AMD falls even lower say sub $5, I will definitely take another look and consider a position
Last year when they were restructuring, I decided to initiate a small position in the company. The main reason being was they were still clearly leading in the AMD (AMD) vs Intel (INTC) war and their products, although more expensive than AMD, were justifiable because the performance was higher. Not too long after, AMD decided to purchase ATI and the reaction was mixed on the street. Tackling so much debt in order to purchase a company seemed like a desperate move on AMD's part. In the last year, AMD has still been struggling with a high debt balance sheet and is forecasting that they will return to profitability in 2008.
So why do I like Intel right now? They have a lot of freedom. With AMD crippled with massive debt, it leaves Intel the ability to leave AMD in the dust.
I am a big fan of Apple (AAPL) products. One way of taking advantage of Apple's rising share of the computer market is to play Intel. It's basically a safer more conservative way of taking advantage of the success.
I like the momentum that Intel has. Although, the biggest risk right now is a recession in the USA. If that happens, spending in the technology field will no doubt suffer and Intel's earnings could be affected.
But if I was a betting man, between AMD and Intel, I would definitely put my money with Intel.
Disclosure: I own Intel and do no own AMD. If AMD falls even lower say sub $5, I will definitely take another look and consider a position
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