Intel (INTC)

(A Top Pick Aug 19/20, Up 14%) Interesting this year and next. Revealed an aggressive new road map that promises significant performance up till 2025. Road map would let INTC leapfrog over TSM, but it's all about the execution. Strong executive and leadership. Price target of $64.

A great time for chip companies because there is a shortage. Intel has missed the next gen move in chips and is playing catch up. Much of their production is in the US and not in China, which is a plus. Owns others like NXPI.

A laggard. New management. Lost market to AMD. Valuations support a chance for a turnaround. He'd be OK owning it, but see his Top Picks today for a way to mitigate risk.

INTC vs. AMD vs. NVDA AMD is taking market share from Intel, and its earnings growth is superior to Intel. Intel is in the midst of restructuring. Ongoing chip shortage, but this is a cyclical industry. Of the three, Nvidia has the most attractive long-term growth platform, but its valuation is very high. She's going to keep watching NVDA for an attractive entry point.

Semiconductors is a fast-moving sector with high valuations. Go with the 5G players. QCOM, which he owns, goes to the top of the list on valuation and potential growth. AMD has done exceptionally well, though valuation is a bit extreme. Not a bad way to play is through the SMH ETF. Nvidia has had the highest growth, but valuation also extreme. He wouldn't chase INTC, even though it's cheap.

It's been a mixed story. Lost its sheen. Massively underperformed. Business is solid, but it may be dead money. He'd pass. Instead, look at Samsung, which has a ton of semiconductor exposure.

It used to dominate chipmakers with a technological lead over its peers, but in the last few generation of chips, Intel has failed, fallen behind. They remain a giant, though, in this business. You can hold this and wait for a turnaround. That said, you can buy this now. It pays a 2% dividend yield The company is addressing its problems. He prefers Broadcom.

He used to own this for its dividend, but became unhappy with how they executed on growth plans. He doesn't see much forward growth in the next two years. They're moving some production to Taiwan Semiconductor. They lag the leaders in semis now. The stock fell to $45, but has rebounded nicely, due to activists who saw value in INTC. He prefers AMD and Nvidia, both momentum growth stocks that have pulled back in the last 3 weeks.