intel

INTEL CORP., $32.47, Nasdaq symbol INTC, announced first-quarter earnings that matched the consensus estimate this week, though revenue fell short of expectations. Still, the stock rose 2% on signs that Intel is cutting its reliance on personal-computer chips. In the three months ended March 28, 2015, the company’s earnings rose 3.2%, to $2.0 billion from $1.9 billion a year earlier. Intel spent $750.0 million on share buybacks during the quarter, so per-share earnings rose at a faster pace of 7.9%, to $0.41 from $0.38. Overall revenue rose just 0.1%, to $12.78 billion from $12.76 billion, missing the consensus forecast of $12.9 billion. Revenue from personal-computer chips and mobile devices (58% of the total) fell 8.4%. The year-earlier quarter benefited as many businesses bought new machines after Microsoft stopped supporting its older Windows XP operating system....

NVIDIA CORP. $22 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 549.8 million; Market cap: $12.1 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.5%; TSINetwork Rating: Average; www.nvidia.com) is a leading designer of 3D-capable video chips, which make video games run more smoothly and appear more lifelike. The company outsources most of its production to Asian chipmakers.

In its 2015 fiscal year, which ended January 25, 2015, Nvidia’s revenue rose 13.3%, to a record $4.7 billion from $4.1 billion in 2014.

Earnings jumped 36.1%, to $801.0 million from $588.4 million. The company spent $813.6 million on share buybacks in the past year. As a result, its earnings per share rose 43.4%, to $1.42 from $0.99.

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Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....

Super Micro Computer, $33.30, symbol SMCI on Nasdaq (Shares outstanding: 46.5 million; Market cap: $1.6 billion; www.supermicro.com), makes servers and server components. The company posted sharply higher results in the latest quarter: in the three months ended December 31, 2014, its revenue rose 41.2%, to $503.0 million from $356.4 million a year earlier. Excluding one-time items, earnings per share jumped 85.7%, to $0.65 from $0.35, beating the consensus estimate of $0.47. The company continues to gain market share, and it’s expanding successfully into products for cloud computing. Super Micro was in the news after reporting its strong results—but the limelight entails far broader coverage from brokers and the media than what the company received. Current examples of in-the-limelight stocks include high-profile companies like Facebook, Tesla, Netflix and so on....

UNITED TECHNOLOGIES CORP., $118.74, New York symbol UTX, announced this week that it’s considering selling or spinning off its Sikorsky helicopter division. The company expects to make a final decision by the end of 2015. Sikorsky supplied 11% of United Technologies’ 2014 revenue but just 2% of its profits. That’s mainly due to a one-time charge after it renegotiated a contract to build helicopters for the Canadian government. The helicopter business has little in common with United Technologies’ larger divisions (Otis elevators, Carrier heating and air conditioning, Pratt & Whitney jet engines, and aircraft controls), so spinning it off makes sense....

Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster. Over 30 billion devices—including things like home thermostats and appliances—will be connected to the Internet by 2020....

Over 30 billion devices— including things like home thermostats and appliances— will be connected to the Internet by 2020. That means you’ll be able to control them with a smartphone, set them up to adapt to factors like outside temperatures and have them notify you if, for example, there is smoke or carbon monoxide in your home. This is known as the “Internet of Things.” The best way to profit from it is with companies like Intel and Cisco, which already power much of the Web’s infrastructure. Another option is Texas Instruments, a leading maker of chips for individual devices....

POWERSHARES QQQ ETF $101.36 (Nasdaq symbol QQQQ; buy or sell through brokers; www.invescopowershares- .com), formerly called Nasdaq 100 Trust Shares, holds stocks that represent the Nasdaq 100 Index, which consists of the 100 largest shares on the Nasdaq exchange, based on market cap.

The Nasdaq 100 Index contains shares of companies in a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies. The fund’s expenses are about 0.20% of its assets.

The index’s highest-weighted stocks are Apple, Microsoft, Amgen, Google, Cisco Systems, Intel, Amazon.com, Gilead Sciences, Comcast Corp. and Facebook.

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TEXAS INSTRUMENTS INC. $54 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.05 billion; Market cap: $56.7 billion; Priceto- sales ratio: 4.7; Dividend yield: 2.5%; TSINetwork Rating: Average; www.ti.com) specializes in analog chips, which convert inputs like touch, sound and pressure into electronic signals computers can understand.

Manufacturers use these chips in a variety of products, including cars, cameras, medical devices and appliances.

The company’s earnings jumped 30.5% in 2014, to $2.8 billion from $2.2 billion in 2013. Texas Instruments spent $2.8 billion on share buybacks during the year. As a result, earnings per share gained 34.6%, to $2.57 from $1.91.

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INTEL CORP. $34 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.9 billion; Market cap: $166.6 billion; Price-to-sales ratio: 3.2; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.intel.com) is the world’s leading computer chip maker. Its products power 80% of all personal computers.

The company continues to benefit as businesses upgrade their computers after Microsoft (see box) stopped supporting its old Windows XP operating system. Strong demand for Internet services has also spurred sales of server computers.

As a result, Intel’s 2014 sales rose 6.0%, to $55.9 billion from $52.7 billion in 2013. Earnings jumped 21.7%, to $11.7 billion, or $2.31 a share, from $9.6 billion, or $1.89.

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