I would be doubling down on INTC at anything under 20. In the next 3-5 years Intel will have the edge and advantage and would have wiped out any and every competetion out there. All the Qualcoms, ARM's, Nvidia's, AMD, Samsung and more will all be history of the past which yall can read to yr kids "There was once upon a time when a company like ARM existed that went to fight a good heroic company called intel and it got nearly killed but survived to be moving around in a wheelchair......." Buy every single intel stock under 20 and hold it for yr retirement glory days which is just over the horizon. goodluck.
I agree that the stock is approaching extremely attractive valuations. I've started buying and will average down slowly to however far it may drop. I'm not knowledgeable about all the finer technical details about their products chips but from a 10,000 foot level I believe they will be fine going forward.
I don't believe the PC is dead and it's exaggerated. Is it a mature market? Yes. Will it grow like it use to? Probably not but that doesn't mean it's going extinct as some think. They are complementary items but not substitutes for each other, specifically not in enterprise. It's also not as if Intel isn't trying to break in to mobile. They were late to recognize the trend but I think that means they will be late in getting in not that they will completely be shut out. With a company with size and R&D of Intel I think it's just a matter of time before they find their way. IMO, they'll either develop their way in or buy their way in. Secondly, they are well established and growing on the other side of the coin of mobile. Their server/data center business is doing very well and that's a booming market just like mobile devices and will probably be more so in the future. This isn't a company that doesn't recognize the problems it has. It's a company that has the resources and R&D to fix them over time.
I''ll use the analogy of another company I've followed which to me had much greater problems but suddenly has become a darling to some degree.
PFE sells the worlds biggest drug, Lipitor. For the last few years everyone was panning the stock saying they have nothing in the pipeline to replace Lipitor. Also that there was nothing there to move the needle for a company of Pfizer's size. They really still haven't replaced Lipitor and they had to cut the dividend, like some others, during the height of the financial crisis. Their divy coverage wasn't not even close to as strong as Intel's. I started adding in the low 20's all the way down to the mid-low teens. There was definitely pain there to manage. The stock is now at 25 and whenever I see an analyst on tv discussing the pharma sector it's a darling when just a few years ago it was ridiculed every chance anyone got. Frankly, I don't think anything has fundamentally changed either as they still haven't replaced Lipitor, yet suddenly that doesn't matter to the street.
A couple other pharma companies faced similar crises, but I didn't invest in them at those times. BMY with Plavix. They had a threat from a Canadian generic maker (Apotex) thanks to poor management and had a severe threat of a divy cut. In the end they managed, never cut the divy, although never raised it either until recently, but they recovered. MRK with Vioxx also had a huge litigation threat but they too recovered. I don't think they ever cut the divy either.
Point being is that when everyone is bad mouthing the stock, is the time to start buying. Tread carefully no doubt but start buying slowly. I don't think any of the companies I mentioned has as strong a fundamental profile as Intel but they all have recovered from their issues and made very nice gains. It's not something that happens overnight and could take some years though. Now that's not the case with every company. I just don't see Intel going the way of Kodak like others do, especially when they are doing so well on one side of the mobile coin and actively trying to fix the other side of it. Not to mention that PCs aren't dead. To me this has a much greater chance to be a recovery play like the others mentioned above rather than extinction play like Kodak.