(NASDAQ: INTC) and International Business Machines (NYSE: IBM) have disappointed investors for years. Intel is facing increased competition from Advanced Micro Devices and an extremely weak PC market, while IBM is coming off a decade-long turnaround effort that's only now starting to pay off.

While it's been a tough period for Intel and IBM investors, both companies appear to be gaining momentum. Here's why shares of Intel and IBM could rebound in the next few years.

Semiconductor giant Intel made a critical choice a few years ago: Bet big on manufacturing rather than split itself up. Other chip companies, including rival AMD, long ago gave up on making their own chips. Intel would not only continue to manufacture its own products, as it has historically, but it would also start a foundry business and make chips for others.

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Source Fool.com