2 Pros Debate: Is Intel A Compelling Buy Or Value Trap?

Intel Corporation (NASDAQ:INTC) shares are up more than 9 percent since the start of 2019, and the stock's recent momentum has at least one pro expecting the stock to move above its 52-week high of $57.60.

What Happened

Analysts at Morgan Stanley said Friday that Intel's stock could see upside to $64 per share. Intel's return to prior highs implies the stock is already "two-thirds of the way there," Johnson said. Given the market's strength, Intel's stock should "push through" to new highs, Johnson said.

Mark Tepper: Beware The Value Trap

Intel's stock is "cheap for a reason," Strategic Wealth Partners' Mark Tepper responded.

His reasoning: Intel's competitors within the most important segment — the data center — are "eating their lunch." The segment accounts for around 33 percent of Intel's total revenue and boasts higher margins, so weaker sales in the all-important segment make the stock a "value trap," Tepper said. 

"If they're not crushing it in the data center group, I have very little interest in the computing side of the business." 

Related Links:

Morgan Stanley Turns Bullish On Intel, Cites CEO Changeover

Susquehanna Downgrades Intel, Questions Management's Guidance

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