Buy Intel Before Windows 8 Releases

Intel (INTC) is currently one of the most appealing stocks in the tech sector. Amongst its peers, Intel is undervalued and has the greatest potential for capital appreciation alongside organic growth in the medium term. Current shareholders should hold long term while interested investors should buy before Microsoft (MSFT) releases the new OS, Windows 8. Intel will benefit as several desktop PCs, tablets and smartphones begin to carry the new Microsoft OS. Intel may eventually form a partnership with Google (GOOG) in the future as its Medfield chip was used for Motorola’s new Razr i. Intel’s fourth generation of chips will create new capabilities in personal devices like face, palm and gesture recondition for access and security that will be unrivaled in the industry.

Intel’s recent earnings release showed it was able to sustain revenue and earnings despite macroeconomic headwinds and soft demand in multiple industries. Intel’s second quarter net revenue increased to $13.5 billion from $13 billion, YOY and $12.9 billion sequentially. Second quarter cost of sales decreased to $4.94 billion and accounted for 36.6% of net revenue. Operating income decreased to $3.8 billion and accounted for 28% of net revenue. Intel’s second quarter net income decreased to $2.8 billion and accounted for 20.9% of net revenue. Intel’s long-term debt was flat from 2011 fiscal year end and totaled $7.09 billion at the end of the first half of 2012. Cash equivalents increased to $5.2 billion from $4.6 billion, YOY. Intel’s PC Client Group accounted for $8.6 billion of net revenue and $3.4 billion of operating income. The Data Center group accounted for $2.8 billion of net revenue and $1.38 billion of operating income. To continue reading, click here.

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