Harris Associates Believes These 5 Tech Stocks Are Undervalued

#3 Intel Corporation (NASDAQ:INTC)

– Shares Owned by Harris Associates (as of March 31): 43.70 Million

– Value of Holding (as of March 31): $1.41 Billion

Harris Associates’ Intel Corporation (NASDAQ:INTC) holding received a 15% cut during the January-to-March period and represented 2.6% of the firm’s portfolio. Shares of the manufacturer of digital technology platforms have fallen by about 12.5% this year amid first quarter financial results that missed top-line estimates, but beat bottom-line expectations. The company’s second quarter guidance was lighter than anticipated however, which contributed to the declines. In an attempt to break free from this downtrend, Intel recently announced that it will cut 12,000 jobs, which represent 11% of its workforce, and that its CFO will be replaced. Ken Fisher‘s Fisher Asset Management upped its stake in Intel Corporation (NASDAQ:INTC) by 1% during the first three months of this year, to 19.63 million shares.

#2 Alphabet Inc (NASDAQ:GOOG)

– Shares Owned by Harris Associates (as of March 31): 1.98 Million

– Value of Holding (as of March 31): $1.48 Billion

Harris Associates also trimmed its stake in Alphabet Inc (NASDAQ:GOOG) during the first three months of 2016, by 8% to 1.98 million Class C shares. The tech giant recently surpassed Apple Inc. (NASDAQ:AAPL) in terms of market capitalization, though its shares are down by 6.34% this year. A month after EU officials claimed that Google was unfairly using its Android dominance to promote its own apps, Russia’s antitrust authorities are looking to fine the search giant on similar grounds. The fine could amount to as much as 7% of the company’s annual revenue in Russia. Google is also involved in a court battle with Oracle Corporation (NYSE:ORCL) over whether it infringed the latter’s copyrighted Java code by using pieces of it when it developed the Android mobile OS in 2006. Fisher Asset Management held about 973,300 Class A shares of Alphabet Inc (NASDAQ:GOOG) at the end of March, following a 3% hike to the holding during the first quarter.

#1 Oracle Corporation (NYSE:ORCL)

– Shares Owned by Harris Associates (as of March 31): 47.72 Million

– Value of Holding (as of March 31): $1.95 Billion

The $163 billion provider of enterprise software and computer hardware products and services made its entry into Harris Associates’ portfolio during the third quarter of 2005. The fund’s stake was cut by 5% during the first three months of this year, to 47.72 million shares, but remained its top pick. Donald Yacktman‘s Yacktman Asset Management also reduced its Oracle Corporation (NYSE:ORCL) holding during the first quarter, by 12% to 20.18 million shares. So far this year shares of Oracle have climbed by over 9%. The company has been on an acquisition spree of late, recently scooping up Opower Inc (NYSE:OPWR) for approximately $532 million and cloud services player Textura Corp (NYSE:TXTR) in a deal valued at $663 million.

Disclosure: None