If Intel's computer client business shows signs of falling off even more—instead of leveling out—Grasso would stay away from the stock. However, trader Pete Najarian contended that Intel's "growth areas are impressive."
Trader Brian Kelly noted that the stock has "a lot of runway" moving forward as it has slipped 13 percent this year. Trader Tim Seymour, who is long in the name, said that Intel's valuation looked "interesting" where it traded Tuesday around $32 per share.
Kelly and Grasso looked to Intel competitor Micron as a better play in the chip space. Shares in Micron have dropped 20 percent this year and closed Tuesday just below $28.
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The stock is a "great buy" at its current level, Kelly said.
Tim Seymour is long T, BAC, C, DIS, XOM, F, GE, GM, GOOGL, INTC, FXI and SUNE. Tim's firm is long BABA, AVP, BIDU, CHL, MCD, NKE, NOK, SINA, SBUX and WB.
Pete Najarian is long AMAT, AAPL, BABA, BAC, BMY, CSX, KKR, KO, LLY, LOCO, MBLY, MRK, PFE and SAP. He is long calls AA, ABT, BBBY, BK, CBS, CNX, CSX, DAL, DB, EEM, EXXI, F, FL, GE, GM, GS, GT, HD, HOG, KO, LYB, MAC, MYL, NEE, NTAP, PBR, PEP, PFE, RAD, SYY, TEVA, UA, UAL, UFS, XLF, XOM and ZIOP. Today, he bought NTAP calls and XLF calls.
Steve Grasso is long AAPL, AMZN, EVGN, MJNA, PFE, T, TWTR and GDX. His firm is long AMD, AVP, IBM, NE, OXY, VALE and RIG. His kids own EFG, EFA, EWJ, IJR and SPY.
Brian Kelly is long BTC=, U.S. dollar, GLD, EEM, CTRL calls, GSG, BBRY, SPY puts and TLT. He is short yuan.