While it has endured some struggle due to the waning popularity of PCs among consumers, Intel's (NASDAQ:INTC) recent announcements may cause its stock, and popularity amongst consumers, to soar. Intel has much power in its research and development sector, thanks in large part to the amount of cash it is capable of generating. This is what led to the company last week announcing a near-future release of three new chips. This week, a new announcement of the ability to overclock SSD chips, and the promise of a first-ever demonstration, continues to fuel positive speculation.
Stock Profile Summary
Intel enjoyed a 0.42% increase today, up 0.09 to close at $22.28. Time will tell for the semiconductor heavyweight whether the increase will continue, as it's just midweek. Last week, Intel seemed to struggle. But at least one analyst has said that this stock is a fast-grower and one to watch in the days ahead.
Intel was given a guru score of 93% according to the Peter Lynch Guru Analysis for determining price fairness. With Intel sales being greater than one billion dollars, the Peter Lynch methodology prefers a number below 40 for a P/E ratio. Intel Corporation does not meet the objective as far as the Peter Lynch analysis is concerned.
The analysis also considers inventory to sales. Here, Intel reaches a kind of limbo, not being looked upon favorably, but not being completely eliminated from consideration over the short term, either. This is because Intel's inventory to sales was 7.59% last year and 8.87% this year, with inventory continuing to rise. However, the increase is only 1.29%, well below the 6% that would cause it to be considered for elimination.
Long Term Includes Profit Decline, Growth Increase
Considered one of the "old dogs" of the sector, one analyst has said that they believe Intel's current issues due to market and product transitions will reflect themselves in future earnings overall. Analysts predict that Intel stock will show, at least for the September quarter, a decline in profit of 11.5% year over year. Growth is expected to increase to 12.12% over the next quarter, but only because the previous year's results were so dismal. When looked at sequentially, analysts say that improvement estimations may only come down to pennies per share as far as returns to investors are concerned.
However, there may be good news for the stock's future, as at least one analyst today questioned whether Intel competitors Qualcomm (NASDAQ:QCOM) and Nvidia (NASDAQ:NVDA) would be able to weather the company's assault on ARM mobile devices with its introduction of three processors, each of which are aimed to compete with three different ARM markets.
Intel Named Stock of Note for This Week, Promises Overclocking Demo
In addition to a favorable score by the Peter Lynch Guru Analysis, Intel was also named as one of three chip stocks that investors should be taking note of in days to come. This is due to a recent announcement by the company that revealed its intention to demonstrate the ability of SSD to be overclocked.
Demonstration Details Affecting Future Intel Stock Popularity
Although it is yet unknown whether this overclocking will reduce the integrity, retention, and stability of data, buzz is being generated about the demonstration, which will be the first public one of its kind. Theory says that this overclocking should work, simply because modifying the clock that runs solid-state drives like a CPU would logically be enough to boost performance.
The demonstration will occur on September 10th of this year at the Intel Developer Forum in San Francisco. The session during which the demonstration is scheduled to occur will also include information about overclocking other drives such as Haswell-based CPUs and the Ivy Bridge-E-based Extreme Edition chips.
But questions about the feasibility of overclocking SSDs are being asked by at least one technically savvy individual. And the proof will be in the practicality of doing just that. After all, the future is looking toward smaller NAND geometries and triple-level cells, both of which pose potential issues. One of these is the fact that each cell will be capable of fewer program/erase cycles, meaning that the only way to retain the life expectancy of an SSD is to overclock it as little as possible.
Still, it is thought that many overclocking enthusiasts will gladly exchange 20% less SSD lifespan for 20% more performance if Intel has found a solution to improve SSD performance fast and without risk. A recently released hex dump proves that overclocking is indeed possible.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.