- The Q3 earnings result is decent, but investors need a long-term view, as Intel’s foundry’s long lead time continues to negatively affect its consolidated margin.
- INTC’s extensive presence in the enterprise will be an edge as it focuses its AI strategy on this segment.
- Retrieval-augmented generation and small language model can be the catalyst the Company needs to gain traction in the booming AI market.
- Acquisition interest in Intel improves the odds for investors, as this can limit the potential downside.
Introduction
Intel Corporation (NASDAQ:INTC), one of the leading chipmakers in the world, has been struggling to benefit from the rise of AI. Intel’s missteps with GPU development have resulted in Nvidia. As a value investor concentrating on companies with long-term growth potential at a reasonable price, I prioritize those undergoing strategic changes. These changes can activate corrective forces that often return the company to a more appropriate valuation, basically mean reversion. My approach centers on analyzing company strategies and competitive advantages and how they will play a factor in its future prospects. I believe that companies undergoing these strategic changes present investors with the highest return possible due to a lot of misconception and uncertainty associated with the stock.
