Intel (INTC) To Cruise On Semiconductor Recovery

Analysts from Oakmark and UBS Securities (NYSE: UBS) have zeroed in on Intel (NASDAQ: INTC) as one of the most attractive large holdings available. The computer-chip giant has rebounded strongly from the recession, and will benefit from the PC-upgrade cycle as well as the introduction of new, more powerful chips.

Intel has the potential for P/E expansion and earnings growth, and could well hit a high of $30 per share from the current level of $21. Debt levels stand at $2.2 billion, while cash is at a comfortable level of $14 billion. Intel’s revenue is set to improve on increased demand for PCs, laptops and servers. Intel’s cheaper chip, Atom, contributed $1.4 billion in revenues in 2009, and has the potential to be adapted for smartphone use.