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Joe Terranova: End of the Line for Intel

Earnings from Intel beat Street expectations with the traders calling the numbers ‘very good’ by any metric. But trader Joe Terranova thinks the stock’s run is done.

He cites two reasons. Apple’s results earlier in the week suggested the Mac was making big advances against PC. "They're achieving 14% year on year growth. That's a major concern for Intel."

And he thinks the launch of Windows 8 in 2012, which is compatible with ARM chips, will pressure Intel.

Terranova just doesn't think Intel results are strong enough to combat what he sees as strong headwinds for Intel.

Both Steve Grasso and Guy Adami aren’t nearly as bearish. “I think the stock should hold $22.50 – but I don’t think it goes ripping higher,” says Adami.

Grasso says the problem with this stock is the history of the price action. “Every time it gets up near $22.50 or $23 is falls,” he says.

Pete Najarian is the lone bull. He thinks it going to $25. “They’re giving us nothing but great numbers. With the stock back over $23 – on a pullback I’d add – if nothing more you’re looking at a 3% dividend yield,” he says. "And they have a great balance sheet."

Looking at the numbers, Intel's revenue in the June quarter was $13.1 billion, up 22 percent over the year-ago period and above the $12.83 billion expected by analysts, according to Thomson Reuters I/B/E/S.

However it was the company’s outlook that really buoyed sentiment. The company forecast current-quarter revenue of about $14 billion. Analysts on average had expected Intel's revenue to rise to $13.5 billion.





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Trader disclosure: On July 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM) ;Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Pete Najarian owns (AAPL); Pete Najarian owns (BX) calls; Pete Najarian owns (HPQ); Pete Najarian owns (MS); Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI); Stutland Owns (GOOG) and short (GOOG) calls; Stutland Owns (IBM) and owns (IBM) calls; Stutland Owns (INTC) and owns (INTC) calls

For Brian Stutland
Stutland's Firm Is A Market Maker Holding Positions In VIX Futures And Options, SPX options and futures, SPY options, and VXX Stock And Options

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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For Steve Grasso
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Patrick Wang
**NO DISCLOSURES

For Ed Mills
The financial analyst preparing this investment research, , certifies that the views expressed herein accurately reflect their personal views as to the subject security or securities and the issuer(s), and further certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the analyst in their investment research.

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Held a fundraiser for Mitt Romney
CNBC.com with wires.



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