Update Intel Corporation

Posted on June 9, 2006 , filed under Stocks | Print This Post

Yesterday Intel Corporation (INTC) dropped to a new 52-week low of $17.05. INTC is part of my Raw Greed portfolio. Readers know that I believe the market has overreacted to worries over the company’s declining market share to rival Advanced Micro Devices, Inc. (AMD) and a slowing PC market. The release of Windows Vista should prompt users to upgrade en masse as the new Microsoft operating system poses the most stringent hardware requirements since the upgrade from Windows 3.11 to Windows 95. The release of the new Microsoft OS should signal the beginning of a new PC cycle that should prompt strong demand for PC hardware and software till the end of the decade. I believe Intel has the marketing muscle and deep R&D budget to take best advantage of the Microsoft Windows Vista release. If INTC drops below $17, I consider the stock an incredible long-term buy.

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