We highlight Intel Corp. (INTC) and Applied Materials, Inc. (AMAT).

Intel Corp. (INTC) has been fined 1.06 billion Euros by the European Commission (EC) for anti-competitive business practices. We have blogged about the suit in the past, and short of the amount (which is historic), it is not a surprise.

The suit alleges Intel gave discounts in exchange for preferential treatment for the manufacturers that used its chips. While the amount of the fine is historic, it will not dent the cash balance of INTC. We would be more concerned about how it affects Intel’s market share over the coming quarters.

Yesterday afternoon, after the markets closed, Intel CEO Paul Otellini gave investors a good feeling. Otellini pointed out a lot depends on the June quarter, but “so far so good.” Orders and billing patterns so far in the second quarter have been slightly better than expected.

Applied Materials (AMAT) also released results last night with the top-line beating expectations and the bottom-line meeting them. Guidance was cautious, which was expected.

The firm has been aggressively building its Solar business. Our feeling is firms that are associated with technology-driven equipment will outperform the firms which are associated with capacity-driven equipment. Can Solar make the difference? We think it can.

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