Pro Analysis

Tech investor Meeks: Sell Intel on strength

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2016 has been a great year for semiconductor investors after some lean ones. The iShares PHLX Semiconductor ETF — of which INTC is its largest component with an 8 percent weight — is up 21 percent. INTC has risen 8 percent, but about half of that gain came last week. It had been an underperformer among its peers.

Last week, Intel's shares rallied after the company raised its revenue and gross margin guidance for the quarter because of "replenishment of PC supply chain inventory" and because the company "is seeing some signs of improving PC demand." Expectations had been low for the firm with revenue and EPS expected to be flat to down year to year.

Unfortunately, Intel's allegiance to PCs, the purported resurgence of which led to last week's positive sales and profit surprise, is the reason why you should sell into this strength in its shares.