Intel Corporation (INTC): Don’t Be Fooled, Intel Is a Buy

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Intel Corporation ( INTC ) just had a pretty ugly quarter … again. Let's get the bad news out of the way first.

Best Dividend Stocks: Intel Corporation (INTC)

( ) has dominated the semiconductor chip industry for nearly 50
years. The company's main focus has been on microprocessors, which
act as the brain of computers, servers, wearable devices and other

Net income was 3% higher than the same quarter a year ago. And earnings per share were even less inspiring, but still positive. Adjusted gross margins are expected to fall slightly in the second quarter compared to the year-ago quarter. And INTC guided lower for the rest of 2016.

Oh, and it's cutting 12,000 jobs .

It Isn't as Bad as It Seems for INTC

So, why did the stock trend higher after all that bad news?

Because INTC has finally made a big decision: It's going to spend less of its energy on the dying PC market and start to build out the new growth sectors that the company is part of.

For example, its Internet of Things division sales were up 22% compared to the year ago quarter. The security software group was up 12%. And the data center group was up 9%.

INTC is committed to adding firepower to these sectors. It won't abandon PCs but it is shifting its resources to where the opportunities exist. And this is what has buoyed INTC.

So, does the bad news outweigh the good news? No, not yet.

Some of the bad news is actually very encouraging. Re-directing its focus onto IoT and the Big Data sectors is a very good idea. In fact, many analysts have been encouraging INTC to move in that direction for quite a long time.

Now, the company is ready to pivot. This is a very big deal. When the largest chipmaker in the world shifts its business model, it signals where we are in this tech revolution.

The other bullish argument here is that INTC didn't just transition to smart phones or mobile devices. It has hooked into two nascent trends that will be broadening and deepening for many years to come.

What's more, INTC sports a 3.3% dividend that is rock solid. When you can sit on a dividend like that and get in on one of the best tech stocks in the world at a discount, it's a pretty good thing.

Also, the cherry on top: Analysts are projecting a 20% move in the stock in the next 12 months. The stock has been treading water for the past year, so this is a great opportunity get into the 'new' INTC.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth , Emerging Growth, Ultimate Growth , Family Trust and Platinum Growth . His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, . Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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