Is There Any Upside Left for Intel Stock?

During the past twelve months, Intel (NASDAQ: INTC  ) stock has served investors a 13.3% gain, underperforming the S&P 500's rise of 18.8% during the same period. Has Intel's underperformance provided investors a buying opportunity?

In the video below, Fool contributor Daniel Sparks and Motley Fool Technology Bureau Chief Evan Niu discuss Intel's prospects and the stock's valuation. Daniel explains that while ARM's (NASDAQ: ARMH  ) microprocessor designs dominate the mobile device market today, it doesn't mean this will always be the case. In the past, Intel has been known to outspend and out invest its peers to maintain its competitive advantage -- and there's nothing stopping it from using the same strategy to make progress in mobile with its Atom line. Best of all, as Daniel points out, very little of this potential upside in mobile is priced into Intel's stock. The stock trades at just 13 times earnings.

Check out the following video to see why Daniel thinks Intel is a buy at today's prices.

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Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

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  • Report this Comment On February 09, 2014, at 2:35 AM, badkat7 wrote:

    Intel remains its own worst enemy. They have no visionaries worthy of the title. Intel has failed at one project after another for the past twelve years. They have attacked mobile, cable TV, smart TV, IP TV, digital home, digital car and every project results in abject failure. The reason is because there is no consumer pragmatism or understanding within Intel. They promote either from within their own ranks or they appoint people who conform to the same pattern of failure. In each case the failure was entirely predictable and Intel has literally wasted billions. Most recently they have failed at IP TV and recently closed their Apps center.

    Much of Intel's problems are cultural; they scorned commodity markets and have no idea of how to build a consumer product. Believe it or not, Intel had the fastest ARM implementation at one time but handed it to Marvell! That is typical of their arrogance and believe me, nothing EVER changes in the corridors of power at Intel.

    To understand Intel's failure you need to understand they both have the talent and the money. Te fault must therefore lie elsewhere. That "elsewhere" is a toxic combination of rotten leadership and culture. And until Intel management accept their culture does not work for consumer products... the rot can only continue.

    I would give Intel a roadmap to success, but what would be the point? They are so self absorbed they cannot see the wood for the trees.

  • Report this Comment On February 09, 2014, at 3:27 AM, stockanal45 wrote:

    Ditto.....

  • Report this Comment On February 09, 2014, at 10:26 AM, bluesky64 wrote:

    In today's market doubling down on catchup my not work. The balance sheet and the street short view point won't allow it. AMD $3.48 has reinvented themselves and getting traction. Look who just added AMD to the tablet line this weekend AAPL.

    The writings on the wall can it be saved, what's next.

    So go long AMD and keep a close eye on Intc.

  • Report this Comment On February 09, 2014, at 1:44 PM, SkepikI wrote:

    THIS worries me: <They promote either from within their own ranks or they appoint people who conform to the same pattern of failure.>

    THIS does NOT:

    <During the past twelve months, Intel (NASDAQ: INTC ) stock has served investors a 13.3% gain, underperforming the S&P 500's rise of 18.8% during the same period>

    NO TRANSCRIPT so I wont view your video. Ergo I will never find out if your commentary is as lame as the above. As for the "12 month gains" it depends more on when you draw the date lines than the performance of Intel. My 12 month numbers are considerably better, but then I bought well and have yet to sell at some low spot. I do not think this sort of arbitrary date numerology is what should pass for shrewd analysis at MF..... Perhaps the video is better, but I will never know ;-)

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