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After reporting second-quarter earnings on Wednesday, technology bellwhether Intelcut its revenue forecast for 2012 amid slowing PC sales and a wavering global economy. Despite weak demand in the PC industry the tech sector is up for a second day.
In light of the news, Philippe Laffont, founder and portfolio manager of Coatue Management, offered investors his top picks in the sector, as well as stocks to avoid.
“The PC slowdown and Intel has to do with the shift away from the PC toward the smartphone and tablets,” Laffont told CNBC’s “Squawk Box.” He explained that this transition is the reason behind Hewlett-Packard’s decline.
Jim Chanos of Kynikos Associates recently made a call to short HP because it is in a declining industry. While Laffont and Chanos do not always see eye to eye, they agree that HP will likely continue to struggle.
Laffont compared HP to Eastman Kodak, saying it is in danger of building technology that will lose relevance five years out.
HP’s two main businesses are PCs and printers. Laffont is not confident that these products can effectively compete with less-clunky, mobile tech products such as tablets.
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