Intel (INTC)

The issues is that the market has been challenging for them. Their recent results were horrendous. Data centres are not doing well, and this was their bright spot. AMD reported great numbers, so it is the company that is not preforming. AMD is also ahead of Intel for technology and they will probably erode marketshare from Intel.

It is a value trap and Intel has been a serial disappointer. The report from last night stated their data centre business continues to deteriorate. They are getting beaten by their competitor, notably AMD. Stay clear of Intel.

It was a monopoly and almost still is. AAPL-Q is now producing their own chips. He has a model price of $93.18 or an 83% upside. It looks great. (Analysts’ price target is $56.87)

They missed a few of their objectives recently. They have a very difficult fight with the industry coming up. They need to move to be very competitive against NVDA-Q. There is going to be a very real battle with China over semiconductors. It will be an important and critical industry over the next few years. NVDA-Q would interest him more.

Looks cheap and still owns some, but not adding. Losing market share to AMD in particular. He prefers the semiconductor ETF, SMH, as a way to play the group at a more reasonable valuation.

Decent dividend at 2.66%. But the dividend is not why you buy a tech company. Not expensive at 11x earnings, with a 6-7% growth rate. A share buyback will help the EPS, but doesn't help the business itself. Only a 5-10% revenue growth rate at most. Mature names tend to have slowing growth. Instead, look at names like Nvidia, AMD or TXN. Technically, below the 200 day MA, which is rolling over.

Qualcomm vs. Intel QCOM holds the patent on the entire cell phone system. They have settled suits with China and Apple and are getting big payments. The stock has moved up nicely. 5G will be a boon for them globally. QCOM will continue to rise. Intel used to be the big leader in microchips until peers have overtaken them. But Intel will catch up, and the stock is now cheaply valued and pays a decent dividend. QCOM is for growth and Intel is a turnaround story. You can buy both.

Product is being pushed back, whereas Nvidia had good numbers. Good chance to buy it here. Semis will become an important part of how the US protects its technology, so you want to own some of these companies. They'll become strategic assets, as companies will want control over their production.

INTC vs. NVDA Nvdia does graphic processing. Took money off the table. Has now overtaken Intel in market cap. In e-commerce, data is everything, and this is where the chip makers contribute in three areas: memory, CPUs, and graphic processing units. Likes Intel, as it's hard to find value. Great breadth and depth of different kinds of chips. Trading at PE of 9x. AMD is trading at 163x, and Nvidia is trading at over 90x.