Intel Today

Intel is a basic cyclical play that still has legs to go for awhile. Consumers and Asian growth are driving current sales, but eventually corporations will have to go through a hardware upgrade cycle before their servers start crashing due to electronic failures. And then there's Windows 7, plus the fact that AMD is no longer performance competitive at any level of the market. Look for market share gains plus incremental growth at least through April/May 2010. If we manage to avoid a double dip recession in 1H 2010, it'll just keep going at least until the fed starts raising interest rates.

Look at it this way: even at the current price, you're earning a 2.7% dividend yield on a solid cyclical stock that's still on the upswing of the cycle.

Furthermore, the release of Windows 7 will likely fuel demand for new computer purchases. Both consumers and corporations often did not upgrade to windows Vista so there is a lot of need across markets for new PCs. Mac still has failed to grab a significant portion of the market share. At some point over the next year or two there will be a large increase in computer purchases. Intel holds the majority of the CPU market share so they will benefit the most.