Why Intel Stock Is a Contrarian Buy Right Now

Old-school is new-school when it comes to the technology sector lately, as some names from the past have re-emerged. While many investors thought the “four horsemen” tech stocks were dead, the old guard of Microsoft (MSFT), Intel (INTC), Cisco (CSCO) and Dell (now privately held) are scoring returns again. Of the three original horsemen, one — INTC — continues to flash bullish signals from a contrarian perspective.

The semiconductor giant remains one of the kingpins of Silicon Valley. INTC currently owns about 15% of the semiconductor market, not insignificant by any measure. In addition, Intel’s last earnings report identified plans to increase capital spending for growth as their share of the data center and tablet market are expanding. The combination of pessimistic sentiment on a stock that is as technically and fundamentally strong, like INTC, meets the smart contrarian’s profile for a bullish trading opportunity. For now, we see Intel stock outperforming the market with a short-term target of $30, followed by a year-end target of $35 or higher.

Source: InvestorPlace

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