Purchasing Intel Corporation

Posted on January 31, 2006 , filed under Stocks | Print This Post

Today I purchased 1000 shares of INTC, Intel Corporation, at $21.35. Intel has dropped over a weak 4th quarter earnings report and increased competition from AMD, Advanced Micro Devices, Inc. I expect that things will remain bearish for Intel as the company struggles to introduce its next generation of Motherboard chipsets and CPU products. Intel introduced a weak line of multicore processors and the company itself admitted that it was a rush job. I see the recent drop in INTC share price as a purchasing opportunity. Microsoft is set to introduce Windows Vista sometime in 2006. With the introduction of Microsoft’s new OS, Intel and AMD should see an increase in demand for new CPU’s. Windows Vista posses the most stringent and difficult hardware requirements of any new OS upgrade that Microsoft has released. The trend is also moving toward dual core processing on the desktop, so while Intel faltered on its first generation of dual core processors, I don’t expect the company to make the same mistake again.

I would like to purchase a total of 3000 shares in Intel. If shares of INTC drop below $20 I will purchase another 1000 shares. If shares of INTC drop below $19 I will purchase another 1000 shares, bringing my total to 3000 shares. The battle between INTC and AMD reminds me of the GPU battle between NVDA, NVIDIA Corporation and ATYT, ATI Technologies, Inc. At some point the share price for both companies rose on demand for new GPU’s from a new cycle of game releases and graphics features found in new games. I expect the same thing to occur with INTC and AMD. I expect a new demand cycle to begin during the release of Microsoft’s Windows Vista. I see INTC reaching $24.00 in 3-6 months and $26.00 in 6-12 months.

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Pingback by RawGreed.com - Stock Updates, Raw Greed Awards, Business Gossip » Blog Archive » Groovy Stocks article on Intel Corporation

2006-03-23 16:36:42

[…] I originally wrote about Intel in this post. I own 1000 shares of INTC purchased at $21.35. Microsoft has announced additional delays for its Windows Vista operating system. The consumer version of Vista is now slated for release in early 2007 pushed back from late 2006. I believe the delay in Vista will soften demand for both AMD and Intel processors. The delay in Vista may also contribute to keeping the price of INTC depressed longer than I originally anticipated. I haven’t changed my price targets for the stock, but I may hold off on purchasing additional shares until the company announces 1st Quarter 2006 results. I believe INTC may drop below $19 before rebounding. You can view my price targets for INTC by clicking the predictions link at the top of the page. […]

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