Intel Corp (INTC)

[ibc]

Congratulations to you and other longs.
I wish I hadn't reduced my position several weeks ago.

Intel showed decent guidance with respect to the PC market. "Stabilization" was the word of the day. I am still somewhat skeptical, but in the meantime, the market has bought into it. I don't think we'll confirm the trend for at least a few more quarters, but the stock market always looks forward with a prediction reflected in the current price.

They are displaying a strong defense in the server market and appear to be agile enough to offer customization for key customers. It will be extremely difficult for competitors to enter this market unless they offer some order of magnitude value proposition that Intel can't meet. This seems unlikely.

The mobile market remains challenging, but they need to continue to invest there as that will be where the actual "PC" client growth will be going forward.

IoT is a bit of a wildcard. I don't see much there, but Intel is wise to place some bets there as a sort of call option on potential IoT growth.