Intel (Nasdaq:INTC) still has a long road ahead of it to regain the love of tech investors who believe that the core PC market is in permanent decline and that rivals like Qualcomm (Nasdaq:QCOM) and ARM Holdings (Nasdaq:ARMH) are still too far ahead in the expanding mobile market.
The concerns about Intel – revenue growth potential, cost structure, capital spending needs – are valid, but should also be viewed in context. Even though Intel is currently converting revenue to free cash flow (FCF) at a historically poor rate, it's generating more than enough to pay its dividend and fund ongoing buybacks. I wonder, then, if investors should approach Intel from the viewpoint that the downside scenario sees Intel grinding along with a bond-like total return, but with the potential upside of a more equity-like return if the company's efforts in mobile and foundry pay off.
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http://www.investopedia.com/stock-analysis/041713/intel-bonds-downside-and-stocks-upside-intc-qcom-armh-brcm-msft-aapl.aspx
Investopedia: Intel - A Bond's Downside And A Stock's Upside?
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