Reasons to Sell Intel Today

Intel (NASDAQ: INTC) has been the second worst-performing stock in the Dow this year, with Hewlett-Packard leading as the worst. These two companies have been affected by the same technological shifts and are feeling the pinch of changing consumer trends. In this video, analyst Andrew Tonner talks about those changes and the reasons investors should steer clear of Intel.

Sales of PCs have been shrinking. Desktop and laptop computers are being sought after less, while consumers have been moving toward mobile devices, including tablets. The decline in PC sales directly affects Intel's revenue, and other companies such as Dell and HP, have been confronting the same predicament -- the growth in the PC industry isn't what it used to be. Intel provides technology primarily for PCs, but it hasn't been able to dominantly place its chips in tablets the same way that led it to dominate the PC industry.

Intel shareholders should be aware of which technologies are growing and which ones are contracting. The growth is happening in tablets, smartphones, and cloud computing. Has Intel made substantial advancement in those areas? Andrew doesn't think so.

Technology is constantly evolving. The market for microprocessors is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Better yet, you'll continue to receive updates for an entire year. Click here now to learn more.

Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 10, 2012, at 4:24 AM, stretcho44 wrote:

    Andrew Tonner uses IDC forecasts to support his growth numbers for the mobil stock. Andrew Tonner then ignores the IDC growth projects for PC shipments for Intel. IDC forecast world wide PC shipments 2012 throuth 2016 to be 382.6, 413.6, 450.9, 490.6 and 528.5 million units world wide.

    IDC says today that the PC market is not shrinking but those could change in the future.

    This is more the problem with Intel than changes in PC shipments. Every change is a negative for Intel and a positive for the tablet and smartphone crew.

    Intel revenue and profits have doubled during the last two years and their share count at the end of the year will down to 4.5b shares when compared to 2 years ago when the float was 6.5b shares.

    It was pointed out that on a "per share" basis, Intel is cheaper now and has a higher yield than when the SP500 hit its low of 666.

    Hey Austin,

    Watch for the CES2013 press event for Intel. This year it will be lots of fun for the longs.


  • Report this Comment On December 10, 2012, at 4:09 PM, tweenthelines wrote:

    Relative to PC shipments? Why not relative to banana's. Any knothead knows easier to get info from the Pentagon than INTC (or APPL) for that matter. Blather on.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2145648, ~/Articles/ArticleHandler.aspx, 10/23/2016 8:12:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 3:59 PM
INTC $35.15 Down -0.28 -0.79%
Intel CAPS Rating: ****
AMD $6.52 Down -0.44 -6.32%
Advanced Micro Dev… CAPS Rating: **
HPQ $13.80 Down -0.30 -2.13%
HP CAPS Rating: ***
NVDA $67.54 Down -0.19 -0.28%
Nvidia CAPS Rating: ****