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Will Solidly Bullish Earnings Generate Gains For Intel?

After the bell, chatter on the Street was all about the solidly bullish earnings report from Intel Intel .

As you likely know, the Street has been critical of Intel for not being aggressive in the exploding tablet market.

However, Intel CFO Stacy Smith suggests the tablet market is small potatoes when compared to PCs, where Intel is dominant. In an exclusive Smith tells CNBC, "The PC market is shipping a million units per day, the wildest expectations are tablets shipping in the millions total this year... I don’t think the tablet market is having a big impact on the PC market."

It's probably safe to say it's not having an impact right now.

"2010 was the best year in Intel's history. We believe that 2011 will be even better," Paul Otellini, Intel president and CEO, said in a written statement.

Looking at the numbers, the firm said that it earned 59 cents a share in the fourth quarter, up from 40 cents a share last year.

Intel reported revenue for the most recent period of $11.46, an increase over last year's $10.569 billion.

Equity analysts who follow the chip maker saw Intel turning in a profit excluding items of 53 cents a share on sales of $11.372 billion, according to a consensus estimate from Thomson Reuters.

With profits that easily outpaced Wall Street expectations, how should you position? What’s the tech trade?

Instant Insights with the Fast Money traders

Guy Adami thinks trading Intel is all about trading a stock that’s stuck in a range. “Looking at Intel, $22 has presented resistance and I think it’s resistance again,” says Guy Adami.

Joe Terranova is among Intel's critics. He thinks there are much better places to put money to work. “They may have 80% of the market, but they're in the wrong market,” he says. I’m concerned that Intel’s focus on PCs is a focus on old technology.”

Brian Kelly isn’t nearly so pessimistic. ”Intel has the market that makes content,” he counters. “Smart phones and tablets only allows people to consume that content. Intel still has a very viable business.”

Jefferies analyst Adam Benjamin agrees with Terranova. "The numbers today are not what the business is going to look like in a year from now, two years from now."

Tim Seymour thinks Intel is a value play. “If you think that Paul Otellini is going to sit back and get shut out of the tablet and smartphone space, I think you’re wrong.”

If you're looking for trades, elsewhere in the space, Joe Terranova is bullish CognizantCognizant and Synchronoss TechnologiesSynchronoss Technologies .

For more coverage of Intel earnings click here


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TILSON RECOMMENDING MICROSOFT

Let’s talk another big cap tech name: Microsoft Microsoft . Back in August, famed value investor Whitney Tilson told Fast Money that the software giant was among his favorite tech plays and he suggested a long position.

As it turned out, Tilson’s bet paid off. Since he made the call shares of Microsoft are up about 15%.

Does the stock have more upside? What does he have to say about this stock now?

Tilson tells us the stock is still “really, really cheap even though it’s moved up a bit.”

He’s very bullish on the PC upgrade cycle.

”Windows 7 drives the worlds' computers but only 30% of the computers have made the transition. By the end of the year it’s expected to be 80%. As a result, we expect earnings to go gang busters,” he says.

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DOES VIX SUGGEST SMOOTH SAILING

With the markets moving higher and the fear indexfear index remaining below 17, are we looking at smooth sailing?

Pete Najarian tells us on the surface you’d think so. “The Vix climbs to its 50-day moving average around 18.60 and then pulls back.

However, he thinks “two major catalysts could spike us. China and the PIIGS.”

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BREAKING NEW WITH KATE KELLY

Two major online service providers, Groupon and Pandora may be weighing the possibility of an IPO.

According to CNBC’s Kate Kelly, both Groupon and Pandora met with several banks to determine if it makes sense to go forward with an IPO this spring.

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TRADE UPDATE: SOFT COMMODITIES

Again the traders are watching the action in soft commodities such as corn corn , and soybeans soybeans , both of which continued to rally due to dollar weaknessdollar weakness and after a crop report out earlier in the week suggested supply might be challenged.)

How should you trade the space now?

On Wednesday’s Fast Money strategic investor Dennis Gartman suggested a long position in one of the many grains ETFs. “Pick one and use it, I think they’re going higher,” he said.

Following are some of the biggest:
Powershares DB Ag Fund ETF (DBA)Powershares DB Ag Fund ETF (DBA)
Market Vectors Agribusiness ETF (MOO)Market Vectors Agribusiness ETF (MOO)
Dow Jones UBS Grains Sub Index ETF (JJG)Dow Jones UBS Grains Sub Index ETF (JJG)
ELEMENTS Rogers Int’l Commodity Index (RJA) ELEMENTS Rogers Int’l Commodity Index (RJA

Find out how JPMorgan analyst Ann Duignan suggests profiting from the moves. Watch the video now!



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Trader disclosure: On January 13, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian Owns (BAC) Call Spread; Najarian Owns (BBY) Calls; Najarian Owns (C); Najarian Owns (F) Call, (F) Bonds; Najarian Owns (GE); Najarian Owns (HPQ) Call Spread; Najarian Owns (JPM) Call Spread; Najarian Owns (MRO) Call Spread; Najarian Owns (MSFT) Call Spread; Najarian Owns (MS); Najarian Owns (YHOO); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Terranova Owns (GLD) Puts; Terranova Owns (FCX) Puts; Terranova Owns (UPL); Terranova Owns (VRTS); Terranova Owns (PVH); Terranova Owns (GM); Terranova Owns (CVI); Terranova Owns (CNQ); Terranova Owns (LTD); Terranova Owns (C); Terranova Owns (PEP)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (DE) Call Spread
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (QLGC)
Accounts Managed By Kanundrum Capital Own (TAN)
Accounts Managed By Kanundrum Capital Own (YGE)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (IPI)
Accounts Managed By Kanundrum Capital Are Long Australian Dollar
Accounts Managed By Kanundrum Capital Are Long Hong Kong Dollar
Accounts Managed By Kanundrum Capital Are Short Euro
Accounts Managed By Kanundrum Capital Are Short Yen

For Whitney Tilson
Funds Managed By Whitney Tilson Own (MSFT)
Funds Managed By Whitney Tilson Own (CIT)
Funds Managed By Tilson Are Short (ITB)

For Ann Duignan
J.P. Morgan Received Investment Banking Compensation In Past 12 Months From (BUCY), (CAT), (CMI), (DE), (ETN), (ITW), (KMT), (MTW), (MOD), (OSK), (PCAR)
J.P. Morgan Expects To Receive/Seek Invsetment Banking Compensation In Next 3 Months From (BUCY), (CAT), (CMI), (DE), (ETN), (ITW), (KMT), (MTW), (MOD), (OSK), (PCAR)
JPMS Has Received Non-Investment Banking Compensation In Past 12 Months From (AGCO), (BUCY), (CAT), (CMI), (DE), (ETN), (ITW), (KMT), (MTW), (MOD), (PCAR)
An Affiliate Of JPMS Has Received Non-Investment Banking Compensation In Past 12 Months From (AGCO), (BUCY), (CNH), (CMI), (DE), (ETN), (ITW), (KMT), (MTW), (MOD), (OSK), (PCAR), (PH), (TEX)
A Senior Employee, Executive Officer Or Director of JPMorgan Chase & Co. And/Or J.P. Morgan Is A Director And/Or Officer Of (DE)

For Colin McGranahan
(TGT) Is Or In Past 12 Months Was A Client Of Bernstein, Which Provided Non-Investment Banking Securities-Related Services And Received Compensation

Bernstein Or Affiliate Managed Or Co-Managed Public Offering Of (DG) In Past 12 Months
Bernstein Or Affiliate Received Investment Banking Compensation From (DG) In Past 12 Months
Bernstein Or Affiliate Expects To Receive/Seek Investment Banking Compensation In Next 3 Months From (DG), (TGT), (WMT)

For Amelia Bourdeau
***No Disclosures

For Brian Stutland
***No Disclosures

For Whitney Tilson SOT
Funds Managed By Whitney Tilson Owned (MSFT) On 8/12/10

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