Is It Time To Buy Intel After The Slump?

Intel Corporation (NASDAQ: INTC) announced on Thursday that it is reducing its first-quarter revenue estimates by nearly $1 billion on back of slowing PC sales.

Doug Freedman, from RBC Capital Markets, was on CNBC to discuss if it's the right time to buy stock and why the company should stop focusing on mobile.

Attractive Here But Lacks Clarity

"There is no doubt that this stock is looking more attractive now that it has come of its high," Freedman said. "I mean this stock topped out at over $37. Now that they are trading closer to $31, I think people...might want to start kicking the tires, but I think what will keep people away from jumping too quickly is we really don't have an update on how the company views the full year yet. We are going to have to wait until their earnings call in about a month."

Stop Focusing On Mobile?

Freedman was asked why he argued in his recent note that Intel is spending unwisely on new mobile initiatives. He replied, "The mobile market is interesting for Intel because it just puts such a tarnish on their business, in their inability to get into that market. The truth is though it's just not really a profit market for the company or will be at any time in the future as far as I can tell. Where I'd like to see them continue to spend is on the server side."

"Pushing general purpose computing functionality into the data center, which really supports the Internet of Things. It's all of the connectivity, all of the data, all the wearables that we have all create data. They need to go into these data centers -- that's where I think the company's best opportunity is," Freedman concluded.