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, Fool.com 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.


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  • 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.

    Stretcho

  • 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.

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