Intel

Intel reported very strong earnings. Both revenue and profit exceeded expectations. The profit margin was very impressive. I like Intel the most among large high tech companies for the following reasons:
1. It is the strongest in the industry and its competitors are weak. Intel has over 80% market share and AMD has 15%. I do not see new companies get into this space. So Intel is likely to keep its profit margin.
2. The demand is strong. Netbooks and laptops are becoming essential for most people. Developing countries' demand are very strong as well. Corporations are upgrade their computers right now because of window 7.
3. The life span of a laptop/netbook is shorter than desktop.
4. Apple's mac is using Intel chips as well.
5. The company has very strong balance sheet.
6. Intel pays a 3% dividend
7. The valuation is very reasonable.

My target price for INTC is $28, which implies a 14X p/e