Soos Global Cap...'s  Instablog

In recent quarters, markets have been disappointed with Cisco's (CSCO) response to the rapidly changing tech world and the challenge to retail routers by the ever-growing 'cloud' options now available.  As a result, the stock was taken down (read: annihilated) until recent levels where it's finally finding some support.

(Source: StockCharts.com) 


Nonetheless, making a verb out of 'cisco' seems to fit the current question surrounding Intel.

Intel's price action, not exciting by any measure but not nearly as devastating as CSCO's experience, might be at a crossroads where market participants are increasingly concerned that INTC, for so long reliant on the growing PC market, might find itself in a 'buggy whip' situation where "tablets" push PCs aside and INTC finds itself making chips for a then defunct product. 

INTC's answer?  Not so fast.


INTC's earnings and guidance, while taking down anticipated PC sales forecasts as expected, focuses on the rapid growth that INTC is seeing in EM markets from Asia to Latin America.  In addition, INTC is quick to remind investors that they're not a one-horse wonder....their corporate business related to enterprise servers and networking products appears strong.  And they've made some recent acquisitions that have expanded their product offerings in related and new spaces.  So while each investor/ready has to opine and decide for themselves as to the relevance of anything noted in this post to their unique financial profile, risk tolerances and portfolio goals, before concluding that 'tablets' will result in INTC's stock being "cisco'ed", consider the broader picture.