Research Keeps These Three In The Lead

Article Excerpt

Computer chip making is a highly competitive business, and requires heavy spending on research and new product development. That’s why we focus on industry leaders that can easily absorb these huge costs, like Intel, Nvidia and Texas Instruments. Although earnings at all three are rising strongly, we see only two as buys at current prices. INTEL CORP. $26 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.8 billion; Market cap: $150.8 billion; WSSF Rating: Above average) is the world’s largest maker of electronic chips. Microprocessors for personal computers and servers account for two-thirds of its revenues. Intel ran into trouble a few years ago as new chips from its main competitor, Advanced Micro Devices Inc. (AMD), cut into its market share. But Intel has done a good job cutting costs, which will help it survive future price wars with AMD. The company has also shifted its research focus, from raw chip speed to chips that use less energy and…