Intel Corporation (NASDAQ:INTC) has slipped further away from its highs of $37 a share on announcing impressive Q4 results as concerns over weakened PC markets and effects of currency fluctuations continue to bite. Unlike Intel, QUALCOMM, Inc. (NASDAQ:QCOM) has remained the Street’s favorite in the chips space, especially on announcing a substantial increase in its capital return program that could clock highs of $15 billion. CNBC’s Fast Money Crew remains bullish on Intel arguing that all the negative sentiments regarding the company have already been priced in, making the stock a cheap option with a solid upside potential.
Steve Grosso affirms that Intel Corporation (NASDAQ:INTC) has a better yield than Qualcomm as the company makes a push for the internet of thinks and cloud business, to offset ongoing declines in the PC business.
“Everyone thinks that QUALCOMM, Inc. (NASDAQ:QCOM) is going to be the ultimate winner there. I think Intel Corporation (NASDAQ:INTC) is going to come out strong. Obviously the biggest revenue stream for them is PC that’s a problem for them but technically great entry spots already closed those gap from that down drafted October, use a $29.85 stop. I would be a buyer of Intel,” said Mr. Grosso.
QUALCOMM, Inc. (NASDAQ:QCOM) according to Grosso could face too many headwinds in China even though they have settled prior issues. Better valuation makes Intel a better option in the chip industry according to Karen Finerman, even though, the company’s PE ratio stands at 13.14X compared to Qualcomm’s 14.79X. The analyst also believes the pessimism around the PC business has already been priced in, in the current stock price making Intel a cheaper option of the two.
Guy Adami is also long on Intel arguing that QUALCOMM, Inc. (NASDAQ:QCOM) is on a rough patch having dropped from highs of $80 a share to $71 and then to the current trading levels of $68 a share. A string of bad news especially from China could see the stock sinking even further to $62 a share, according to the analyst.
Dan Nathan remains bullish on QUALCOMM, Inc. (NASDAQ:QCOM), even though, the stock has not been cheap over the past ten years at the back of negative sentiments from China. The fact that the company does not have any debt with a big cash balance of $33 billion makes the stock a strong buy based on the upcoming buyback program according to Nathan.
“What I don’t like about Intel Corporation (NASDAQ:INTC) is how PC-centric it is and I think sentiments in Qualcomm is very-very poor here I do like their mobile focus. I think next month if this Samsung Galaxy 6 comes out, and there Snapdragon is in it, I think that will be a good thing. Let’s remember this huge buy back that they just announced, I expect them to start accelerating, I like that 2.7% dividend,” said Mr. Nathan.
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