We have been blogging positively about Intel Corporation (NASDAQ: INTC) since May. However, with ho-hum results reported last night and recent stock appreciation, it may be time to look elsewhere for profits in the semiconductor space.

Intel reported very solid results but not strong enough to drive the stock much higher from here. As we've been blogging since Q1 earnings release, Intel's revenue and gross margins were about to ramp higher, but from listening to last night's results that growth is going to be muted. The company expects only 6% yoy revenue growth, little improvement in gross margin and free cash flow generation which will be difficult to forecast.

The most disturbing aspect of last night's call was Intel's forecast for flat operating expenditures for 2008. This means Advanced Micro Devices Inc (NYSE: AMD) is proving a more formidable competitor and not going to disappear as it has in the past when Intel has targeted market share. This could mean little-to-no revenue growth for 2008.

Also, stock repurchased during the quarter was a measly $100 million. Not a good number. The combination of massive slowdown in share repurchase and flat operating expenditure guidance means Intel is becoming concerned about its sources and uses of cash.

I would take the profits and move elsewhere. It looks like National Semiconductor Corporation (NYSE: NSM) currently has the best growth profile in the semi space.

In April, we blogged twice that investors should start chipping away at the chip giant. However, it appears investors should become more aggressive as both sentiment and fundamentals are changing for the positive at Intel Corporation (NASDAQ: INTC).

According to a report released by Citigroup's Glen Yeung, Intel is "likely to substantially accelerate" its share repurchase program in coming months. Historically, Intel has picked up its share repurchase program when earnings are about to re-accelerate.

Intel repurchased a measly $400 million worth of stock in the first quarter, but has $16.9 billion to go on its current repurchase program, according to Yeung.

We blogged in April that Intel was washed out, with not too many sellers remaining. In addition, it appeared gross margin expansion was on the horizon, another bullish sign for the stock. It is time to go from chipping away at Intel's stock and loading the truck up with the Santa Clara-based company. Intel has seriously wounded its nearest competitor AMD, once again, which means Intel has room to increase prices, margins and profits.