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Tech Stocks That Are 'Better' Than Intel: Analyst

Published: Wednesday, 15 Jul 2009 | 3:34 PM ET

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By: JeeYeon Park
CNBC News Associate

Intel's earnings results have set the stage for the next leg of the chip rally, said Craig Berger, senior technology analyst at FBR Capital Markets, but he doesn’t expect much upside from the stock.

Intel's [INTC Loading... () ] quarterly earnings report beat expectations, and issued guidance that was well above consensus.

“Intel’s done a great job,” Berger told CNBC. “But as I look across the semiconductor landscape, I see better growth prospects and lower valuation and other more preferred stocks like Broadcom [BRCM Loading... () ], Marvell [MRVL Loading... () ]…Fairchild Semi [FCS Loading... () ] or On Semi [ONNN Loading... () ].”

Berger said growth has been harder to come by for Intel.

“While recovering nicely off the bottom, they’re serving much more mature markets with less growth opportunities versus Broadcom or Marvell — which are smaller companies that have much better growth opportunities in the market,” he said.

Additionally, Berger said he is worried about Intel’s Atom processor used in the low-end notebooks and netbooks.

“I’m concerned about the cannibalistic impacts of selling these less expensive chips instead of the more expensive and more profitable mainstream chips that Intel’s historically sold,” he said.

In the meantime, Nvidia [NVDA Loading... () ] will benefit from the near-term strength in the PC supply chain, noted Berger, saying it is a “good derivative play.”