Intel (INTC)

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.

Currently owns shares in company.
Solid growth profile.
Would recommend buying.

You want to be in the S&P 100. He models $15.93, 40% lower than now. Trades at book value and pays 2.6%. The semis are highly cyclical.

Semi-conductors have led for a long time but ran into difficulties last year. The sector has rallied along with the techs this year. Intel is still stuck in the PC market and has not made an effective leap into faster growing areas.

He sold last fall. Expenditures and capex still high. Dividend took a hit today. Restructuring necessary to stay competitive with TSM. Will take a while to come back.

The semi space is volatile, so you do have to manage your exposure. You could spend a good long time of an economic cycle out of favour, and you could suffer if you don't get the timing right. EPS has dropped from $5 to $2. Lots of leadership trouble. Failed to hit promises. Not competing well. Value trap despite the dividend.

She just sold it before earnings in early January. There were too many quarters of overpromising and not delivering.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. EPS of 10c missed estimates of 19c; sales of $14B missed estimates by 3%. 1Q sales decline of 40% reflects demand weakness across its core client and datacenter segments, though the company remains at a lower risk of losing share in the client segment. Shortfall of about $1.5 billion in the client segment vs. consensus suggests 1Q may be the low point for gross margin, with management focused on generating at least $1 billion in cost savings through improved utilization of its plants and $2.6 billion in depreciation savings from extending equipment's useful life. The outlook was gloomy, and the stock was hit with mulitple broker downgrades in the last 12 hours. There has not been much growth here, and EPS this year will likely be less than it was 20 years ago. Unlock Premium - Try 5i Free