Intel's 2nd Quarter

Intel’s (INTC) 2nd quarter came in at $.51, well above street estimate of $.43. Gross margins exceeded expectations at 67.2% versus 64%e. We are encouraged by management’s increase in guidance for the 3rd quarter despite the fact that inventories grew 12% quarter to quarter.
Company will benefit from the following areas:
1. Rebound in IT spending.
2. PC growth in emerging markets.
3. Increase in higher margin products.
In our opinion, this company continues to remain undervalued based on its ability to grow earnings and a superior balance sheet. Even if the stock traded at a market multiple for 2010, it would be worth $25.80 or a 22% increase from current price




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