Downgrading Intel: Duck Before The Punch

(12min)

Summary

  • Intel closed 16% higher on Tuesday on rumors of TSMC and Broadcom buying parts of the business; this is the trade opportunity we were eyeing for 1H25.
  • We think the upside from this chatter is limited after Tuesday's run-up, and more importantly, we think Intel has troubling competition woes heading into the 2H25.
  • Intel is cheap, but this is not a window to buy on weakness considering the higher risk profile for 2H25 from increased competition with Qualcomm, Nvidia and of course AMD.
  • We’re taking this run-up to downgrade Intel to a strong sell, recommending investors take advantage of the excitement and count their profits.
  • This idea was discussed in more depth with members of my private investing community, Tech Contrarians. Learn More »

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Intel (NASDAQ:INTC) stock closed 16% higher today on reports that the legacy semiconductor company may undergo a spin-off involving Taiwan Semiconductor Manufacturing Company (TSM) and Broadcom (AVGO), cutting up parts

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This article was written by

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Tech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector.

They run Tech Contrarians, an investing group providing institutional-level company research to individual investors. Utilizing a live portfolio with quarterly updates, bi-weekly newsletters, and answering questions daily via chat, Tech Stock Pros aims to demystify investing in the technology sector. 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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