Intel (INTC) is the sort of “old” tech company that is gaining favor on Wall Street because of its pivot toward higher-growth markets in the technology space, notes Chuck Carlson, editor of DRIP Investor.

The company is still viewed primarily as a provider of chips for the PC market. That is about the least sexy thing you can be when it comes to tech.

The reality, however, is that Intel is remaking itself. Wall Street is starting to catch on to the transformation at the company, but there is still plenty of upside remaining in these shares.

I look for the transformation to continue in 2018, which should be reflected in better growth rates and higher profits. The yield of 2.3% enhances the stock’s total return.

The technical action has been quite impressive, as the stock recently broke out from a three-year trading range. Such meaningful breakouts tend to have legs, which should be reflected in market-beating returns in 2018.

The stock is a low-volatility way to play the high-volatility tech sector and should outperform the broad market in 2018. It is my top pick for conservative investors over the coming year.

Be aware that Intel offers a direct-purchase plan whereby any investor may buy the first share and every share of stock directly from the company. Disclosure: I own shares in Intel.

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