Greg, my first impression of that article is that it lumps Intel with the rest of the semis, which is a no-no. Intel has many firm-specific advantages: superior process/manufacturing technology, compotent mgt., absolute control of the >$1000 PC market, x86 worstation/server market, etc. While most "semi" companies are usually focused on 1 particular market or technology, Intel is fairly-well diversified in a number of products and markets, most of which are expanding rapidly. Thus, Intel now deserves a higher PE than it received in the past. Yes, Intel stock has run-up in a short-time, but so has its revenue forecasts. Plus, the stock has corrected about 10% on each leg-up, which is a good sign. I'd be a buyer here between $110-$115.
joey |
