Buy Intel Low Before It Explodes Higher

(11min)

Summary

  • I maintain my 'Buy' rating on Intel, seeing recent recovery as insufficient given ongoing undervaluation and positive corporate changes.
  • New CEO Lip-Bu Tan's cost-cutting and restructuring initiatives are driving improved margins and free cash flow, with further upside potential.
  • While Q2 guidance is cautious, underlying demand from AI PCs, Windows 10 end-of-life, and server upgrades, plus the 18A process ramp, offer significant top-line potential.
  • I present a contrarian view: market skepticism about Intel's AI position and past performance creates a prime opportunity if new management delivers on cost and innovation.
  • Risks remain high due to execution and competitive pressures, but if Intel delivers, I see a price target 15-38% above current prices by year-end.
  • I do much more than just articles at Beyond the Wall Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Поворотный момент впереди

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Intro & Thesis

I first wrote about Intel Corporation (NASDAQ:INTC) in late January 2024 with a "Hold" rating, stating that it was better to "avoid the laggard" and noting that while they were talking about their plans, other

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This article was written by

12.81K Followers
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, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in INTC, over 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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