Intel (INTC)

Yesterday, it reported a decent quarter, but a miserable forecast of much lower gross margins. But Intel is in a dogfight with AMD over large customers, which explains their margin forecast.

He recently got in. Buy into it in thirds. If it goes up, you own it. If it goes down, there's another 1/3 you can buy.

He expects a big refresh in PC sales which will drive INTC, but the market isn't talking enough about this. You will be fine owning this.

After underperforming for years, shares jumped 56% in the past year.

Tech stock performing well into 2024. Demand for products continues to rise. A.I. will create further demand for computer chips. "Re-shoring" will also benefit company. 

Focus on chips and CPU business. Not a great place to play A.I. Doesn't see business performing. Cheap for a reason. 

They signed a deal with Siemens to provide them chips, and they wrapped up legal issues about infringement. He's bullish chips in 2024 among lower interest rates. Intel faces more competition from Nvidia, Apple, even Microsoft and others, but there's still upside.

Almost at price target, can probably buy cheaper. Has become a favourite, mainly because CEO has finally started to deliver. Great suite of products. Cloud, data centres, AI, edge, foundry services. Likes it, but it's already moved. Beat on top and bottom, raised guidance. YOY, growth is down. Hold on, add at $42, and $40. Probably won't go under $38.

Right space, but not the right horse. Better opportunities elsewhere. NVDA is quite expensive, so look at ASML. 

Popping 10% today on a strong report and forecast. It's bottomed. They are returning to growth. Very confident in the CEO. Loves that price targets rose today.

He's avoided all chipmakers, because of the strong geopolitical tensions (US, Taiwan). Always make him nervous when a government throws subsidies into a business as Washington is; always are strings attached. Also, Apple will make its own chips. Prefers to own the chip-using companies like Apple, Microsoft, Google, and Amazon.

Was up 6% in Q3. He prefers other names like Nvidia, but this doing well, because the bar is set low and the company is not performing as badly as before. Intel is always late to major trends.

(A Top Pick May 26/22, Down 17%)

It's out of favour. He targets $25.92 or 24% lower than today's price. Yields 2.11%. If you like semis, this is the cheapest one. Great quality, but they need to catch the next chip trend.

Past success has not been able to be maintained.
Better choices within chip sector.
Would not recommend investing.

Buy both AMD and INTC along with your NVDA shares. NVDA's pretty well sold out into Q3 of 2024, so there's lots of demand. NVDA's going to have competition from these two. Impressed by INTC's CEO and promises on the foundry side, which should translate into accelerator chips and advanced packaging.