Intel: Expect Strong Buying Pressure On Q3 Earnings Release

(13min)

Summary

  • Intel's Q2 FY2024 results were disappointing, with revenue and margins falling short of expectations, highlighting ongoing struggles against competitors like AMD and TSMC.
  • Despite recent negative sentiment and downgrades, I believe Intel has a favorable environment to beat Q3 expectations, potentially leading to a stock price recovery.
  • Intel's long-term initiatives, including AI and foundry expansions, are promising but slow-moving, with significant competition and execution risks.
  • I remain neutral on Intel stock due to valuation concerns and high competitive pressures, despite potential short-term positive surprises in the upcoming Q3 report.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Entrance of The Intel Museum in Silicon Valley.

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Into & Thesis

In late January 2024, I initiated coverage of Intel Corporation (NASDAQ:INTC) with a "Hold" rating and recommended avoiding the stock, as Intel's business appeared to be an obvious laggard compared to

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This article was written by

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Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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