Intel May Be Insane, but Intel Stock Is Still a Bargain

A funny thing happened after Intel's (NASDAQ: INTC  ) disappointing Q1 earnings release: Despite reporting weakened sales and plunging profits, Intel promised investors quick improvement in gross margins this current quarter -- and a whopping 60% gross margin for the year!

Are these promises realistic? Perhaps not. But in this video, Fool contributor Rich Smith will tell you both why the gross margin target may "miss," and why that miss could be a great opportunity to buy Intel stock.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market 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 Intel stock. Click here now to learn more.

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  • Report this Comment On April 20, 2013, at 1:38 AM, stretcho44 wrote:

    From the Q1/2013 call transcripts (Intel's words):

    ".... For the second quarter, we expect gross margin to increase 2 points to 58%, and the gross margin forecast for the year remains 60%, with gross margins in the second half back into the low 60s."

    Intel said that MARGINS FOR THE 2H would be in the low 60's AND the full year "REMAINS UNCHANGED" at "Gross margin percentage: 60 percent, plus or minus a few percentage points. "

    Intel clearly described a range of results and a Q3 and Q4 results of 58% and 59% would be at the bottom of the Intel range.

    63% is needed to get to a full year rate of 60%.

    It would be amazing if they did a 63% and 63% after a Q1 of 56% and forecast a 58% for Q2. Maybe they are sandbagging the Q2 number.

    Intel FORECASTED (not "promised") a 60% +/- a couple %.

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