In the past, you wouldn’t turn to companies in the computer hardware or software field for value -- they have long been growth plays. As growth in the industry continues to slow, though, the premiums placed upon shares of these companies should naturally come down. However I feel the extent to which these premiums have eroded may be overdone -- take a look at these figures:
Never before have shares of these technology bellwethers simultaneously traded at such low valuations. Currently I like both Microsoft and Dell better than Intel, but I believe all three provide value at these levels.
Rather than trying to pick one out of the three to invest in, I feel one can expect to outperform the broad market by simply buying a bundle of these three stocks, investing an equal amount into each of the three.
As mentioned, growth has slowed, but it is still present. Also, each of the three are sitting on very large cash hoards that are only getting bigger. I see all three as very good long term plays and am looking for shares of all three to bottom out soon.