One Tech Stock Outlook

Intel (INTC) reported stronger-than-expected earnings and said that it believed the slumping computer sales market had “bottomed out.” Wall Street’s response: Sell ’em.

The chip giant’s shares are off four percent, dragging on the Nasdaq Composite and raising some questions about the tech sector generally. This bout of pessimism is probably a bit overdone and reflects more what’s happened in the past few months than what happened yesterday.

Tech shares have been on a strong run, with the S&P 500 information technology group up 15 percent in the last month alone. That’s a pretty quick sprint, and Intel’s merely decent news wasn’t enough to sustain it.

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