Intel (INTC) stocks have been on a downward trend while chip stocks like Nvidia (NVDA) and Broadcom (AVGO) have been hitting all-time highs. Despite being up 39% year to date, Intel has historically been a poor performer, being in the red for the last 2 and 5 years.
Intel has struggled to reach its all-time highs from the dot-com era, with its stock currently trading at less than half of those levels. Currently, Intel stock is near its 52-week lows while the S&P 500 and Nasdaq Composite have been hitting record levels almost daily.
The main reason for Intel’s falling stock price is its tepid growth. The company has seen weakening top and bottom-line growth, with its operating income falling significantly over the past decade. In addition, Intel lost out on opportunities in the smartphone and AI industries.
Despite the challenges, Intel’s CEO, Pat Gelsinger, is optimistic about the company’s future. He expects sequential revenue growth in the coming quarters and in 2025, driven by various growth catalysts in the commercial PC, AI-enabled PC, and data center businesses.
Analysts’ forecasts for Intel stock are mixed, with some rating it as a “Strong Buy” or “Moderate Buy” while others rate it as a “Hold” or “Strong Sell.” The average price target is 28.9% higher than the current price, indicating some potential upside.
Looking ahead, Intel aims to become the world’s second-largest foundry by 2030 and expects its business to post operating margins of 30%. The company is also focusing on advanced chips with AI capabilities to drive sales and unlock value in its other segments.
While Intel faces obstacles and needs to meet ambitious goals, there is potential for the stock to see significant upside if the company can execute on its plans. Despite short-term noise, Intel’s long-term prospects look promising, especially for patient investors who can benefit from the 1.6% dividend yield.
Overall, Intel’s stock may present an opportunity for investors willing to bet on the company’s transformation and growth prospects in the coming years.
Article Source
https://www.theglobeandmail.com/investing/markets/indices/TXCX/pressreleases/26904676/is-this-chip-giant-a-buy-near-52-week-lows-for-its-attractive-dividend/