Intel (INTC)

Given the large single-day decline, we do not think so. INTC has been slow to adapt in the race to produce AI chips. While the decline is aggressive and it is also displaying general weakness in the market today, INTC did record a double miss on EPS and revenue, with the EPS miss being very significant (2c vs 10c expected). Both revenue and EPS declined year-over-year as well. The company is implementing a $10B cost-cutting plan which should help in the future but at 28.5x forward earnings, we are not as interested. There is turnaround potential eventually, but we are not sure that will happen in the near term. 
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Shares are plummeting 25% today after reporting. The CEO made the wrong choice in building a foundry. Why? If you're building while still designing chips, you are competing with your customers. If you're a customer going in for foundry work, how do you know Intel won't prioritize their chips over yours, or steal intellectual property. But the CEO had few options.

He sold it a few years ago, so he could get out of a capital-intensive business. He invests in capital-lite semis companies with high margins and stable profits. But a company investing a lot in capex within a cyclical industry is definitely exposed.

In a tough spot. Very expensive to build large, advanced fabs. We're talking $5-10B a pop. Falling behind and attempting to leapfrog over the #1 competitor TSM. Not constructive on it. TSM's lead very hard to catch. Would be left surviving on government handouts.

Playing the nationalism card, but TSM is now building fabs in Arizona.

Great opportunity to pick up 4 pillars. MU on the manufacturing, TSM for the foundry, LRCX or KLAC or ASML as the equipment suppliers, NVDA is a gift down here as a designer. And (he can't believe he's going to say this) even INTC; come 2025, it will be competitive with NVDA.

He's recommended it a handful of times, and it's always blown up in his face. He owns it in a few separately managed accounts, and a couple of his analysts want him to put it in the fund. The chip coming out is going to be pretty competitive, even on price, with NVDA's.

You'll probably have to wait for Q4 of this year or Q1 of 2025, but it's a pretty good bet down here around $32. 12-month price target of $41, sweet. If everything can only come together on their new offering.

It's one of those stocks that, when you look at it on paper, it's a no-brainer. However, it all comes down to execution. Small position only.

They keep missing their goals and timing as competitors surpass them. Naybe they can get their act together, but that isn't investing. Look elsewhere.

Bought it though it's unloved. Shares plunged late April on earnings and lowered guidance, but the selling is done. So the bar is set low for their next report which should be positive. Intel is starting to see analyst upgrades. The government is supporting this with its chips act.

Lagged peers. Lost ground to NVDA and AMD in CPUs and GPUs in the AI chip market. Market skeptical of a turnaround. EPS forecast ~10-11%, tepid compared to others. PEG ratio still expensive. Technically not great that it's below 200-day MA and that average is moving sideways to downward.

It looks intriguing but is way down. It is building big new fabs in the U.S. It has been a leader in the business for a long time but do they have the technology to turn the corner. It has a P/E of over 30X and a yield of 1.5%

On his watchlist right now. He'd never buy this for his conservative account. Seems to be holding the old neckline, and he's looking for further proof. If it does, he'll go in for a trade -- here for a good time, not a long time.

A perfect description. Losing market share. Stock's bottomed out, can now start to move. A lot of the worst has been priced in. Won't double, but could get back to $40-45. Yield is 1.6%.

Intel is a tricky stock and we haven't seen the bottom yet which means lots of downside potential. If it gets to $32 you could consider buying.