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Intel: Not All Hope Is Lost Yet

May 24, 2023 3:01 PM ETIntel Corporation (INTC)TSM70 Comments


  • Despite mixed performance in the past along with all the execution risks, Intel Corporation has more than enough opportunities to create value in the long run.
  • However, it will likely take a couple of years for Intel to fully execute its transformation strategy and be able to unlock its business potential.
  • That’s why patience is required when it comes to investing in Intel at the current price, as only long-term investors would have an opportunity to yield meaningful returns.
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Latest Consumer Technology Products On Display At Annual CES In Las Vegas

David Becker

Back in February, I was warning that Intel Corporation (NASDAQ:INTC) is likely to cut its dividends as the company has been burning cash and generating negative free cash flow ("FCF") to execute a much-needed turnaround that could

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This article was written by

Bohdan Kucheriavyi profile picture
Bohdan Kucheriavyi is a Ukraine-based proprietary trader working at a prop firm. He has been successfully investing personally and professionally since 2015. He combines his knowledge of international relations with his passion for global markets to identify good investments based on momentum and special situations with a specific focus on tech companies. Bohdan leads the investing group Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

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Comments (70)

Elopsson profile picture
I will buy one share at 25 to keep a eye out on INTEL
USER 8983491 profile picture
Anyone have any insight into how Sapphire and Ultimately Emerald Rapids play into the NVDA story? My understanding is that NVDA chose Sapphire Rapids for a new design?
The word “yet” says it all.
Intel will start rising a year before the street realizes they are on the right path. This means there will be at least a year of bears screaming about how bad intel is and how price makes no sense - get ready for it.
danielaqwe profile picture
yes.... most retail investors are dangerously uninformed about the actual products in this sector. They resort to repeating the same old talk they read somewhere else.
Yes, retail investors are like a lynch mob... it will take a while for the mob to realize their mistake. Intel is doing just fine... their IDM 2.0 initiative will make them the biggest kid on the playground.
The 1T market cap of NVIDIA proves nothing more but a bunch of people made a lot of money by selling their NVDA shares to some enthusiastic investors at a very high price.
"IDM 2.0 initiative will make them the biggest kid on the playground."
Without Tower deal maybe not but based on the past they will bring Tower in for expertise then not listen to them.
danielaqwe profile picture
The Tower acquisition only would allow INTC to broaden INTCs spectrum of services. It is not like Tower is the knight in shining armor who rescues the princess...
If the acquisition does not happen, INTC saves some money for other things.
ChristianDe profile picture
IMHO there is no more hope for miracles, the bag of tricks is empty. It will fall below 20$, sooner or later.
on its way to $20
Intel is too far behind and will not catch AMD and Nvidia; no way I'm wasting money investing in Intel
You should have read these exact same comments on all the AMD articles 5 years ago! Things can change a lot in 1 or 2 years in this industry.
@Skezo INTC moves like the titanic add a 0 to your projection maybe 10 or 20 years.
@Skydive They will get acquired and someone will turn it around.
"...Intel's decision not to use EUV lithography systems..."
so, if TSM's EUV was so great all those years, why did AMD wait until zen4 to use it for their CPUs?
@jayn Because Apple bought all the capacity. Nice try.
Second largest 5Nm customer in 22 and now largest in 23
As stated in roadmap 2020.
What INTC should be worried about is AMD dropping into 3 nm THIS year ahead of the roadmap.

@jayn Dude, because they didn't need to. We can thank Intel for that.
Nvidia said $11B expected sales in the current quarter. $5B higher than WS estimate and Q1 sales. Why? It may be due to DGX H100 systems started shipping on May 1st with intel SPR HBM2 and huge demands.
@daniel_k nice try. Nvidia clearly explained the rise is in data center AI explosion. Has nothing to do with Intel SPR which nobody cares about.
@investor5115 lol exactly. nvidia got SPR at cost from a desperate Intel and when Grace is available, SPR will be tossed into the trash can where it belongs.
@daniel_k hope springs eternal. Folks still looking for signs of life at the train wreck named INTC.
"...it'll still take years until it reaches TSMC's current capabilities."
it depends on what type of capabilities you need. For example, Intel is shipping desktop CPUs that clock to 6GHz, and have created PVC GPUs with 47 active tiles.

Intel also develops IP that TSM doesn't offer. They could, for example, bundle fully qualified designs to use the new MCR 8000MT/s DIMMS.
Murad Shawar profile picture
@jayn Even if it takes 5 years INTC will rise back to 68$ over time eventually .
@Murad Shawar while Intel losing on all fronts ? Yeah maybe if we get 400% inflation then yes. Otherwise you’re looking at a failed company like a failed state / nation in a disaster zone.
@investor5115 a failed company? no
danielaqwe profile picture
Yes NVDA up 25% after hour. Obviously I wish I had known this one a day ago.
My problem is, that I can only invest in something I understand, something what makes sense to me. NVDA's PE is quite unreasonable, because TSMC cannot possible ramp up their chip production to provide enough chips to NVDA to justify this price. I fear, this is another example of investors got ahead of themselves... it happen all the time... while Intel gets trashed with bad comments.
AI is like a gold rush, everybody wants to be in on the action, but very few actually will get rich.
Again, I have absolutely no idea if NVDA will be even more up tomorrow or if it will be down. For this reason, I cannot invest in NVDA... I am an investor not a psychic or gambler. For me, NVDA is even less of a buy now than it was 24 hours ago.
@danielaqwe it’s a nice a problem to have to not be able to fulfill enough orders and maxed out capacity utilization as opposed to intel empty fabs. What Nvidia has is a Tesla, what Intel has is a Chevy Neon. Or to put more bluntly, Intel is working with can openers while Nvidia is running an automated open can of woop ass on Intel.
TechStock Hunter profile picture
@danielaqwe It's a good maxim, "don't invest in what you don't understand", or "stick with what you know". Me, I lost on energy stocks, because I strayed from these wise words.
Jeff McVeigh said SPR has over 400 design wins in his presentation at ISC 23.

Intel announced yesterday the completion of production qualification of their CXL 2.0 agilex-7 FPGAs. Intel's FPGA IPUs will be updated to support CXL 2.0. These support being a root port as well as an endpoint according to the sth article.


MSFT and Intel issued announcements today on their co-development of AI features for Windows 11 using Meteor Lake's VPU AI accelerators.

@jayn I have basically no conception on whether that's significant or not. It's always good to play nice with Microsoft but beyond that?
You forgot:
pcie5, ddr5, avx512. wifi6e, thunderbolt, amx, integrated vRAN, DSA, QAT, AI ASICS, tiled GPUs, NFV, IPUs, silicon photonics, ADAS.

INTC fell 8.45% in 4 days,18% since high on 3 April none of it matters.
INTC is bleeding out.
@jayn Remember Lakefield? Yeah MSFT showed some decent gadgets which were then never seen again.
There are no fair value of any stocks. Only speculation of future value.
It's different to get people to buy intc now, the price trend is too bad. no one will believe you

People buy a stock, particularly one that has failed as spectacularly as Intc, when the numbers come in good. And since we look as though we are on the verge of a recession and who knows whatever else, most will wait until Intc shows them the money.
Havamal profile picture
@kata Stocks will rise long before this "longest ever anticipated" recession takes hold... and the stock will be $50+ once the numbers look good. So even with the questionable management worth a flyer in the $20's.
How come Microsoft finance has Intc at 13xs, not 71xs?
NVDA and AMD up large after earnings rept. today on AI. INTC not so much.
@Red702355B let's see if NVDA can hold these gains through close tomorrow.
New Management has just concluded 2 years of leadership. It sounds like this is a 5 year plan, perhaps more ?
Bad_Andy profile picture
Put your $ in CDs for a better return over the next 3+ years than INTC will give.
@Bad_Andy Senior--------WELL SAID!!
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