Cisco is a very cheap company, considering all the things they do in networking (inside the home too) and telecomm. That kind of makes Cisco a consumer staple too. The same argument can be made for Intel. That makes Intel supercheap. If we agree that their closest competitor should not be worth no more than one tenth of their market value, the following ratios should tell all of us something:
CSCO has been going up for a while now, that makes JNPR look really cheap.
AMD has been going up for a while, there will be a lot of pressure on AMD, and Intel will most likely go up to bring the ratio down to .10. Historically AMD has been a one punch pony. The market will have to figure this oout.
I'm saying that both INTC and JNPR are very very cheap.
Do your own due diligence.
The way INTC and JNPR are trading right now underline either fraud on wall stret or just too much bearishness.
The parallel is that AMD has a better chipset than INTC as JNPR has a better router than CSCO!"
Dell is in business to make money. Yes,there will be more comparison shopping. Remember INTC is already deploying their newer chipsets, and rest assured that INTC will never be caught asleep at the wheel again, because too much rest is never good.
Now Cisco is so hot that i do not see a share price drop soon. My math is clear. Cisco has a market cap of $126b, therefore JNPR cap should at least be $12.6b. Right now JNPR is at $8.8b with the share price at $15.06.
New target for JNPR=(12.6/8.8)*15.06=$21.56
Now as far AMD goes the market (despite the manipulation by Cramer and the likes) will find a way to properly evaluate its shares. Remember Dell did not drop INTC. It's just that INTC is no longer the sole supplier. Competition is always good for business. Intel will from now on deliver better chips. INTC now has the chance to AMD out once and for all. I see AMD and INTC trading at around $23 each in about 6 months.