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Intel Rises 3.59% On Strong Third-Quarter Profit

Intel (INTC) rose 3.59% today on strong third-quarter profit. Intel is the largest chipmaker in the world. Intel develops and manufactures microprocessors and and platform solutions for the global personal computer and server market.

Intel earned $0.65 per share over the third-quarter, which exceeded analyst estimates of $0.61 per share. It had third-quarter revenue of $14.2 billion, which also exceeded analyst estimates of $13.9 billion. The future bodes well for Intel. You can clearly see a rising trend with both earnings and revenue.

Although there are some headwinds for Intel, which includes the lack of penetration into the mobile and tablet markets, I feel that their dominance in the microprocessor market and unrivaled R&D places them as one of the top companies in tech. I'm not a huge fan of tech companies in general, as some of the products they make are quite honestly a little beyond me. It's somewhat easy to see and understand what exactly Intel does. They make a product that is needed by billions of people, and the need for servers isn't going anywhere. All the smartphones and tablets around us need servers to communicate with and pass along information. That's where Intel, smartly, becomes the middleman.

I purchased Intel earlier this summer and thought about adding to my position around $20. I wish I would have, but at the time I found other opportunities. So many equities, so little cash. The dividend growth has been particularly strong with INTC. They have raised their dividend twice in 2011. They first raised it in February from $0.16 per share to $0.18 per share. They again raised it in August to $0.21 per share. They are quickly turning into a formidable dividend growth stock.

I have had INTC on my watch list for additions on a pullback, but it looks like I may have missed my opportunity for now. I would like to add to my position if it pulls back to the $22 level.

Full Disclosure: I'm long INTC.

Thanks for reading.

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