I'm pretty new to stock trading, so don't hesitate to point out anything I omitted that you think would be worth mentioning regarding Intel.
So Intel seems to be one of those tech underdogs who no one thinks will perform well in the future because they haven't been innovative at all in the past few years compared to companies like AMD and such. To me, this looks like a long-term buy opportunity:
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Financials look pretty healthy from what I know.
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2.80% dividend yield is a big nice-to-have if you're gonna hold the stock patiently for a few years.
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P/E ratio is one of the lowest in the tech market right now, meaning that the company has a lot of room to grow if the expectations become optimistic. And in the case of a market crash, it would be one of the safest bets in the tech market because of its healthy P/E ratio (correct me if I'm wrong on this one).
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They announced an increase in capital spending for the next year, so they are likely trying to get back the ground that they've lost in their technological advancement.
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They're soon going to compete in the discrete GPU market too, so that can't do them any wrong.
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With their own semiconductor foundries, they have an upper edge in manufacturing costs and can avoid a lot of supply chain related issues. And with the never-ending chip shortage, they might be able to make more chips at more affordable costs than AMD and Nvidia, who are bound in their production by TSMC's production capacity. Surely, their manufacturing processes are not as good as TSMC and Samsung's 5-7 nm processes, but it looks like they plan on catching up with them within the next few years.
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They still have their place in the lower-end desktop/mobile CPU market, as their lower-end CPU's are much cheaper than AMD's. They offer the cheapest CPU's with integrated graphics on the market right now. Even if they don't grow anytime soon, I doubt they will run out of revenue sources, especially with the chip shortage going on.
My plan would be to hold the stock for a few years and cash in those nice dividends while waiting for the stock to become a growth one. I think Intel has already reached its floor price, and it would be very unlikely that the stock price goes any lower considering that it has strong fundamentals.
What do you think?
Submitted December 01, 2021 at 10:06AM by SomeKindOfSorbet https://ift.tt/3lqbGMS
