Intel (INTC)

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. 

5-10 years ago, it was the king of the hill, but then it just wasn't delivering. Now the CEO is executing and delivering. Lots of good things happening. Both design and manufacture, which is unusual. New chip will be very competitive with that of NVDA. Tremendous buy around $34-36. 12-month price target of $49.50. Yield is 1.41%.

Intel has structural issues and is frozen in time in a business (semis) that is dynamic. Nvidia, AMD and Broadcom are on buyers' lists, not this.

They just reported a return to profitability. He held this for 10 years, a great stock until management and other factors changed. Yes, Intel beat, but it ain't cheap. You have a long wait in this at best, though you won't lose money in it. He prefers Micron, NXP and others.

He wants to like it, but it's hard. Has to right the ship in terms of technology and execution. The foundry business will be successful over the long term, but competition is TSM, which is a very good company. Complicated story. Undervalued. He's watching. Other good names to buy now.

Models 47% growth rate for 2023-4 and trades around 19x 2024. It hasn't been one to buy for a long time, but the US foundry and reshoring theme makes a lot of sense.

If you want to invest in AI, invest in the best in breed--Nvidia and AMD--but not Intel which hasn't kept up.