Why Intel Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, computer chip giant Intel (NASDAQ: INTC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Intel and see what CAPS investors are saying about the stock right now.

Intel facts

Headquarters (founded)

Santa Clara, Calif. (1968)

Market Cap

$112.8 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$52.3 billion

Management

CEO Brian Krzanich (since May 2013)

CFO Stacy Smith (since October 2007)

Return on Equity (average, past 3 years)

23.3%

Cash/Debt

$17.4 billion / $13.6 billion

Divided Yield

4%

Competitors

AMD

Samsung

Texas Instruments

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 10,059 members who have rated Intel believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, MrPipes, tapped the stock as a particularly attractive turnaround opportunity:

I don't think [Intel] is a short-term win but in the long term, Intel is [recognizing] the need to expand in a very big way into the smart phone mobile market. It has the margin issue to overcome (willing to accept a lower margin) but if this ship can turn and look to make this up with volume, and I believe the signs are there that it is turning, Intel can move into this mobile market [successfully].

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Read/Post Comments (3) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On August 13, 2013, at 11:22 AM, 2sour wrote:

    Intel has been underperforming relative to the S&P for over a decade ... well before smart phones were in the picture. The stock price is roughly in the middle of the range it has traded in over that decade. Intel needs to expand into the mobile market just to stay relevant and keep from declining ... I don't see any groundbreaking new "thing" that will suddenly propel them to new highs ... do you?

  • Report this Comment On August 13, 2013, at 1:44 PM, CluckChicken wrote:

    "I don't see any groundbreaking new "thing" that will suddenly propel them to new highs ... do you?"

    Well they are the only ones manufacturing sub 21nm chips and if their schedule holds will be at least 2 years ahead of everyone else to 10nm. Not saying this gives them the market but this does give a significant advantage and with the mobile chip market having a life cycle of about a year any advantage can quickly make one a dominate player.

  • Report this Comment On September 15, 2013, at 10:33 AM, alibabababa wrote:

    It is hard to rebound when FAB's are being closed in Massachusettes that produce outdated technology, people being layed off in Rio Rancho, NM because of sagging PC sales and people and assets sitting idol in Chandler,AZ because of a delay in producing the next technology. I see a company in kaos with no clue what their next move should be. Instead they are forced to lay people off to cover their tracks in lack of profits. This is not world class leadership this is lack of leadership. They may want to reconsider their new CEO and get somebody that can make decisions and lead.

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