Intel: Don't Bet On Quick Turnaround
Summary
- Intel gave a disappointing guidance for the second quarter, which led to negative sentiment initially, but the stock has remained within a tight range.
- Most of the headwinds faced by the company have likely been priced in, and we might not see further correction as the stock trades close to its book value.
- Intel’s new leadership has not given a clear future strategy yet, and it needs to add at least one major customer for its foundry or AI business to improve Wall Street.
- Investors should closely watch Intel for a turnaround potential, which can deliver massive returns if the new management builds momentum for its new chips.
- Intel stock is trading at a modest 14 times the EPS estimate for the fiscal year ending Dec 2027 and a low P/B value compared to other chip stocks.
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