Intel (INTC)

A core position for him. He's always held this. They're a quiet leader in this space. In the last few years, they have been warming up to the Cloud by selling chips into the Cloud. He strongly believes in Intel.

(A Top Pick August 4, 2017. Up 40%). It’s coming back down and is lower than his $76.95 model price. The CEO was fired over the weekend. He thinks that second-quarter earnings will be good and this pullback is a good buying opportunity.

He thinks there is more upside. It’s having a nice correction. Current price is 51% discount from his model price of fair market value. (Analysts’ price target is $59.74)

It used to trade at 50 times earnings, but that has changed to only 10 times. He notes they have technically broken out through $35 resistance. He does not own it, but expects a 10-20% annual return for an investor would be likely (with the dividend contributing significantly to that return).

Is recent dip an opportunity to buy? They’re not in chip stocks. They’re not at cheap valuations right now. Semiconductor space is vulnerable because of its competitive, commodity-type business. Has had a fairly good run, pretty steep valuation.

This used to be the 800 pound gorilla of the chip business but then chips became more commoditized. Now, Intel is getting its mojo back. They have rediscovered innovation, new products are gaining market share and the stock has risen sharply after doing nothing for a long time. He doesn't expect them to ever regain the iconic status that they had before because too many people now know how to make good chipsets. However, he thinks the stock today is worth considering.

It is another of those tech stocks that had early success and is now reinventing themselves. Don't be too concentrated in techs.

It was tied to the PC market, but took a long time to transition into cars. Trades at 14x earnings and pays a 2.2% dividend. It's executing well these days. Good company.

t is a big player in the concept he holds called Digital Twins, supplying the technology for large data gathering. They have come out with new releases of processors and have huge customers such as Alibaba. They have been aggressive into 3D technology. This is a core holding for him.

The semi-conductors have been hot, hot, hot. His model price is $72.27 – 40% upside. They will report earnings soon. He thinks they will transition into a mobile space easily. Yield 2.3%. (Analysts’ price target is $54.97 )

It's one of the biggest suppliers of computer chips, so they can continune to capture a growth opportunity. There are chips in everything in society now. Valuation is attractive, but earnings are stronger at, say, Google. He's watching it.

If looking for a well-established dividend paying stock is this a good choice? Like the chip makers but some other names might be cheaper. You can’t argue with the chart with Intel. He likes Applied Materials (AMAT-O) because it is in the semiconductor equipment manufacturer space and it is cheaply valued. They make equipment to make chips, so you avoid deciding who is going to be the winner among the chip makers.

He has been recommending this “old-tech” company for years and thinks there is still great potential. He has a model price of $75. Yield 2.32%. (Analysts’ price target is $52.89 )

He loves the semi-conductor space. They came in with great earnings last quarter. Yield 2.5%. (Analysts’ price target is $52.29 )

One of the world's great businesses that has been at the top of its game forever. Historically, this has always been a very cyclical business. Their earnings, over time, have been quite cyclical up until the last few years. Chip prices themselves are very cyclical. For a stock like this, you either get in early or wait for the next cycle, so you need to wait for the next cycle.