By: Michael E. Martinez

Last week, Intel hit its 52 week low due to less than spectacular earnings on Wall Street. Intel reported net income of $2.4 billion, up from $2.1 billion a year ago. Sales were at $10.2 billion up from $9.6 billion a year ago. EPS was reported at 40 cents, compared to 33 cents year ago. Analysts had expected 43 cents a share. Intel's stock took a turn for the worse after that report. Also, Intel had admitted that rival AMD had been taking some market share, after that news and an upbeat earnings report from AMD, that stock surged the following trading day. With that said, Intel was oversold for a few reasons. Sales haven't come in yet from Apple using Intel products.

think that will be big and a revenue driver, Intel's stock is just too low, it deserves to be trading at least $26. Despite what Wall Street analysts had said, the earnings were still not bad. Intel is still a world leader in semiconductor products and will still continue to be in ten years. Personal Computer demand during 4th quarter of '05 was in line with expectations, the average selling price of a desktop PC was about $700 which was also in line with estimates. This is only a short term investment as it is oversold short term, this is just a good time to get in and shares should rebound somewhat next week.

So heres what you do; buy Intel (INTC) on Monday, and hold for about a month or whenever it hits my projected target at $26; because I don't see any short term or long term catalysts that will push it up above that level. If you want to buy a semiconductor company that will outperform in the long run, pick up some AMD shares.