Summary
- I believe Intel is now too undervalued despite recent struggles, with long-term potential driven by AI advancements and cost-cutting measures.
- Intel’s Q3 FY2024 results were disappointing, but the market’s pessimism offers a buying opportunity for long-term investors.
- Intel’s AI-specific PCs and new Xeon 6P CPUs should boost revenues and likely profitability, aiding its turnaround plan.
- I think the market is too pessimistic about Intel’s role in the AI-driven future. The upside to today’s EPS projections may be massive, making INTC quite cheap in the next 2-3 years.
- Prioritizing long-term thinking in this kind of situation is crucial, so I’m thinking of starting to build a long position in INTC stock shortly.
- Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »
Into & Thesis
I initiated my coverage of Intel Corporation (NASDAQ:INTC) in late January 2024 with a “Hold” rating, calling the firm “a laggard to avoid”. About 5 months later, I decided to upgrade the stock. 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.
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