INTC should be a 42 dollar stock! Why? at 0.84 dividend, it is paying a dividend of 3.5%. IBM only pays less than 2%. Using at 2% dividend as base point for INTC, it should be at $42( $42*0.02 = 0.84) while PE at 21, which is very fair for a tech company.
It's November 2011 INTC $27.80. Dec 2011 Apple signs up with INTC for Ipad 3 and Iphone 5. Upgrades flow in INTC Breaks out to $35. Jan 2012 INTC has Huge earnings showing 2011 growth of 25% beating the anticiapated growth of 20% More upgrades INTC is $42. Never say Never
Another point of view.
TXN and Qualcomm are close competitors. Intel's growth looking better than both. Yet one trades at 16.5 times next year's earnings and the other at 12.5 times. Since Intel blows well past estimates, Intel will most likely come in at well above $2.50 for this year and another 12% growth for next year, bringing them to at least $2.80 EPS. Intel should at least get what QCOM is getting. Even if Intel got a PE in the range of TXN and QCOM, which is 12.5 to 16.5, that's $35 to $46 a share. So $42 a share is still only 15. Well within range.