Making Intel Great Against AMD: Don't Fear The Latter's Share Gain

(10min)

Summary

  • Intel Corporation is painfully losing market share to Advanced Micro Devices, with the latter looking to take 40% share this year.
  • We think Intel's share loss to AMD is temporary and should reverse next year with 18A and new product line up more so after Nova Lake spec leaks.
  • Management is laser-focused on restoring gross margins above 50% and is aggressively cutting costs through layoffs and potential divestitures.
  • Our strategy: swing trade INTC stock between $19-$22 now, but accumulate below $20 ahead of Q4 for the expected turnaround.
  • Looking for a portfolio of ideas like this one? Members of Tech Contrarians get exclusive access to our subscriber-only portfolios. Learn More »

Computer Chip Manufacturing

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Markets are rallying this week after taking a sharp hit Friday on trouble in the Middle East between Israel and Iran that sent oil up and semis down for the day. The top performer Monday was Advanced Micro Devices (

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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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