Investors appear to be bullish on Intel Corp. (INTC) amid signs of a turnaround for the company.
Shares closed Wednesday with a gain of 1.4% to $48.76, extending a jump of 3.6% on Tuesday.
The chipmaker now presents an opportunity for investors, said Eric Kallen, president of Hayek Kallen Investment Management. His firm currently holds 122,993 shares of Intel in its $290 million portfolio.
"We saw the slide earlier this year and we added to our position," he told Real Money. "We will continue to add sporadically."
Kallen explained that at its current multiples the stock is cheap and worth buying.
"There is a lot of upside in the long term," he said. "Intel is a good vehicle not just to capitalize on the current business, but with the R&D the company is investing in, it is positioned well to take advantages of secular shifts in the industry."
He said that Intel is well-positioned to compete in the "Internet of Things" era.
"A lot of the shorter-term problems for the company have been overblown," he said. "I don't know for sure which company is going to win in IoT, but given Intel's track record of innovation and current cash flow, I believe Intel is in good position."
Kallen's outlook on Intel is supported by recent analyst estimates, as four out of five analysts publishing research this week have issued a buy rating, according to FactSet data.
"Intel has a dominant position in microprocessors for datacenter, PC and other computing applications," Wells Fargo Securities said in a company note. "The company has a history of leadership in chip manufacturing, as well as profitability and return of cash to shareholders."
With that outlook in mind, Wells Fargo analysts issued a $55 price target and an outperform rating on the stock.