I don't think there is much thinking needed to go into this pick -- when a company's competitor is taking hit, the stock is a definite buy. As of now, Intel's products are more favourable than AMDs in 2007 (and possibly 2008) and I think Intel can definitely gain back market share this year. Profits are expected to jump by 20% in 2008 for Intel which comes to approx. $1.35/share. Of course, who knows if those margins will hold true as AMDs products could perform better than expected. It will be interesting to see how the various lawsuits play out between AMD, Dell, and Intel, but I don't anticipate them having much of an effect on the PPS in the next year. From a technical standpoint, the 3 month chart for Intel looks ripe with the MACD crossing the money maker and other indicators continuing their trend upwards. As of now, the trend (according to ADX) does not look very strong, but it could build strength. I don't think it will be out of the question to see the PPS move up to where it was at the beginning of '06.