Index Investing News
Saturday, May 31, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Intel (INTC) is on the path to transformation. Is the stock a buy?

by Index Investing News
April 10, 2024
in Markets
Reading Time: 3 mins read
A A
0
Home Markets
Share on FacebookShare on Twitter


Intel Corporation (NASDAQ: INTC) has adopted a multi-pronged strategy to return to high-growth mode, including the development of new-gen chips and the launch of a systems foundry designed to manufacture AI chips for customers. The company ended fiscal 2023 on a positive note, riding the solid consumer momentum and demand recovery in the PC market.

The semiconductor giant has been on the path to a major transformation, especially after Pat Gelsinger took the helm as CEO about three years ago, with the highlight of the program being the restructuring of the manufacturing business with a focus on capacity expansion and AI capabilities.

Investing in INTC

To achieve the financial flexibility needed to invest in new projects, the company last year cut the quarterly dividend and called it a move aimed at positioning itself “to create long-term value.”  For Intel’s stock, 2023 was a recovery period as it bounced back from a multi-year low in the early weeks and maintained an uptrend throughout the year. However, the momentum waned as it entered 2024 and has lost about 22% since the beginning of the year.

The valuation looks favorable, and those who have an eye on INTC should add it to the watchlist as the stock is likely to regain strength this year. The company bets big on the expansion of its foundry business, though the segment suffered a loss last year. It is estimated that the new fab facilities will come online next year and achieve breakeven by 2027. The company has secured $8.5 billion in government grants for the foundry project, which requires heavy investment to scale and become profitable.    

Earlier, Intel officials issued optimistic guidance for the first quarter, projecting continued revenue and earnings growth. For the long term, the firm bets on new product launches and upcoming fab facilities to drive growth. Recently, the Intel Gaudi 3 AI accelerator was introduced, a high-performance chip designed to boost artificial intelligence workloads in enterprises. The new processor will enable the company to compete effectively with market leader Nvidia.

Results Beat

The tech firm delivered stronger-than-expected earnings and revenues in the past four quarters, even as the demand for computing products gained momentum. In the December quarter, adjusted profit more than doubled to $0.54 per share, aided by a 10% increase in revenues to $15.4 billion. The growth was driven by continued recovery in the Client Computing segment, which creates and sells computing products for consumers and businesses. That was partially offset by lower Datacenter and Network revenues.

“As we look into Q1, our core business, including client-server and edge products continues to perform well and is tracking to the lower end of seasonal. However, discrete headwinds, including Mobileye, PSG, and business exits, among others, are impacting overall revenue, leading to a lower Q1 guide. Importantly, we see this as temporary, and we expect sequential and year-on-year growth in both revenue and EPS for each quarter of fiscal year ’24,” said Gelsinger during the Q4 earnings call.

Bullish Outlook

Intel sees continued uptick in revenue performance as it enters the new fiscal year. That should translate into strong margin growth in the first quarter when the company is expected to swing to profit from a loss in the prior-year quarter. The Q1 report is scheduled for release on April 25, after the closing bell, with analysts predicting a double-digit growth in revenues to $12.8 billion. They expect the company to earn 14 cents per share in Q1, compared to a loss of four cents last year.

Intel’s stock experienced some weakness this week, extending the decline seen since the beginning of the month. It traded lower on Tuesday afternoon and stayed below the long-term average.



Source link

Tags: buyINTCIntelPathStockTransformation
ShareTweetShareShare
Previous Post

Why new build homes can lead to a property tax surprise

Next Post

Arizona’s top court allows near-total 1864 abortion ban to go into effect | Courts News

Related Posts

This is the reason Jamie Dimon is at all times so gloomy on the financial system

This is the reason Jamie Dimon is at all times so gloomy on the financial system

by Index Investing News
May 31, 2025
0

Jamie Dimon, CEO of JPMorgan Chase, testifies through the Senate Banking, Housing and City Affairs Committee listening to titled Annual...

What to search for when Signet Jewelers (SIG) stories Q1 2026 earnings outcomes

What to search for when Signet Jewelers (SIG) stories Q1 2026 earnings outcomes

by Index Investing News
May 30, 2025
0

Shares of Signet Jewelers Restricted (NYSE: SIG) have been down 1% on Friday. The inventory has gained 26% over the...

Did a Secret Courtroom Simply Halt Trump’s Tariffs?

Did a Secret Courtroom Simply Halt Trump’s Tariffs?

by Index Investing News
May 30, 2025
0

Final Friday, I walked out of the grocery retailer shaking my head. I had simply picked up a bottle of...

What a federal commerce courtroom block on Trump tariffs means for shoppers

What a federal commerce courtroom block on Trump tariffs means for shoppers

by Index Investing News
May 30, 2025
0

President Donald Trump holds a chart as he proclaims a plan for tariffs on imported items throughout an occasion April...

U.S.-China talks ‘stalled’ and want Trump and Xi to weigh in, Bessent says

U.S.-China talks ‘stalled’ and want Trump and Xi to weigh in, Bessent says

by Index Investing News
May 30, 2025
0

The U.S. and Chinese language flags are seen on the day of a bilateral assembly between the U.S. and China,...

Next Post
Arizona’s top court allows near-total 1864 abortion ban to go into effect | Courts News

Arizona’s top court allows near-total 1864 abortion ban to go into effect | Courts News

Title Data Is Helping Real Estate Agents, Lenders Prospect for Clients

Title Data Is Helping Real Estate Agents, Lenders Prospect for Clients

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Time-Saving Actual Property Accounting Ideas for New Traders

Time-Saving Actual Property Accounting Ideas for New Traders

August 13, 2022
Watch: Geek Out with Adam Savage Visiting Jim Henson’s Archives

Watch: Geek Out with Adam Savage Visiting Jim Henson’s Archives

November 6, 2023
Sputtering offenses face off as Nationals meet Brewers

Sputtering offenses face off as Nationals meet Brewers

July 12, 2024
Soccer-Boehly-led consortium wins bid to take over Chelsea By Reuters

Soccer-Boehly-led consortium wins bid to take over Chelsea By Reuters

May 7, 2022
BeiGene reports BRUKINSA’s efficacy edge in CLL study By Investing.com

BeiGene reports BRUKINSA’s efficacy edge in CLL study By Investing.com

February 29, 2024
Germany authorized €103 million in defence tools for Turkey in 2024

Germany authorized €103 million in defence tools for Turkey in 2024

October 19, 2024
Smarter B2B Resale Methods for Managing Extra Stock and Returns

Smarter B2B Resale Methods for Managing Extra Stock and Returns

May 20, 2025
Leerink ups 2seventy to outperform, cites attractiveness as takeover target (NASDAQ:TSVT)

Leerink ups 2seventy to outperform, cites attractiveness as takeover target (NASDAQ:TSVT)

January 31, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In