Intel prepares for its next surge

Article Excerpt

When investing in techs, it’s essential to remember that these companies operate in the Manufacturing & Industry sector of the economy. They can put on extraordinary growth in the right conditions. But when the economy stumbles or a company falls behind the competition, you can expect deep market setbacks, especially when a stock is coming out of a period of over-valuation. That’s what happened to Intel, the world’s top maker of computer chips. Its earnings rose 15-fold between 1990 and 2000, but its stock rose 75-fold. At its 2000 peak, it was trading at 50 times earnings. Since then, its stock price has come down to much more attractive levels in relation to earnings, and earnings seem ready to set off on a new surge. INTEL CORP. $21 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; WSSF Rating: Above average) is the world’s largest maker of computer chips, with roughly 75% of the world market. Computer makers Dell…