Intel

The stock fell when the CEO left in late June. He wants to buy this stock on the dip. His model price is $79.49 showing a 50% upside. He thinks that old tech has not risen as much as other tech companies, like Micron and nVidia and that leaves opportunity for patient investors. (Analysts’ price target is $58.91)

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.

The moonshot ideas on autonomous vehicles are going to take a much longer time to play out than people expect. To position yourself in this company, which has its own set of issues, he would prefer to be in Softbank (9984-JP), which gives you diversification. Nvidia (NVDA-Q) gives you an extremely high growth name, and doing a lot more than just autonomous cars, and that's the direction he would suggest.

They missed the mobile chip market. They expect revenue growth to be 2-4% a year. You can expect 8-9% total return.

Not a fan. Haven’t been able to make it clear exactly what they are trying to do. Some years their targets are gross margins, and other years it’s ROI. Thinks they are betwixt and between. Regardless of what guidance they give on capital expenditures, they are going to spend more.

He watches semiconductor stocks as a bellwether for the market. This consolidated between $38 and $33 from September until September. Then it broke out and went to $40, traded sideways for 8-9 days, and is breaking out again today. He is a big bull on the semiconductor cycle for the Internet of things. This is a really attractive company, and is talking about splitting itself sometime.

An old tech company, and hopefully they can get things together. This has huge value. It closed at $39.76, and his model price is $61.56, a 54% upside, just on their current earnings. Dividend yield of 2.7%. (Analysts’ price target is $41.)

A company in transition. They did very, very well on the back of the desktop. As desktops became more pervasive, the stock ran up, but the world moved to a more mobile environment, and their ability to take a portion of that revenue has slowed. Great balance sheet and great story, but it is going to go through a transition into an environment where its chips aren’t as expensive. The longer-term story is of much smaller growth. He is a net seller of the semi space at this point. He would suggest Analog Devices (ADI-Q), on a market pullback.

Pays a pretty attractive yield. Has a lot of cash. Transitioning from their PC related end markets to higher growth markets. Semiconductors generally have done quite well. With improving economies, it is probably a relatively safe holding. Dividend yield of about 2.7%.

It has strong seasonality from now until the first week in January. It has already established an upward trend. There is a very good chance it will break out.

They made an interesting announcement that they have a new chip coming out that will be not only faster than existing chips, but a quantum faster. He thought chips reached their limit. INTC-Q will no longer be viewed as a commodity manufacturer. They have surpassed their competitors. He expects them to gain increased market share. It has a cheap PE.

He has a model price of $57.88 representing an upside of 60%. Dividend yield of 3%. (Analysts price target is $40.)

Seasonally, technology stocks are a little soft over the summer, and this tends to be the time where they peak out. The chart shows a big lid at around $38. It needs to blow through that in order to be attractive, and at this point it hasn’t happened. Because we are in the worst part of the season for Tech stocks, he would delay on buying this.

This was very, very good when PCs were the main thing. There was a transition to mobile devices and the business turned down. They are about to move to the mobile environment. This is a story that is going through a transition. A solid balance sheet and there is a definite upside opportunity, but he struggles to see how we can gain significantly here. You are at risk of a cyclical decline in the semi market, so he would probably be selling.

The largest chip manufacturer. A good part of their business is declining from traditional PC chips. Their latest acquisition will be positive in the long run. It is a company that makes chips for the autonomous cars. The company uses a good deal of their cash hoard, but they remain in good shape financially and pay a good dividend. He wouldn’t want to bet against this company.

An indispensable company in the world technological echo system. They have chips everywhere. However, it is competing in a very, very competitive industry, in which chips have become commoditized. He prefers some of the broader software/hardware companies such as Apple, Alphabet and Microsoft.