Stock Spotlight: INTC
Intel, a name we haven’t heard in quite some time. Once a true computer and chip giant and now a volatile chipmaker/tech company…
Volatile… How?
Well, take a look at how INTC has performed since the beginning of this year:
Down over 52% this year alone… Maybe tumultuous is a better word.
But the past couple of days have shed a potentially bullish light on the stock.
A Bloomberg report shared that Apollo Global Management (a private equity firm that also owns Yahoo Finance and a slew of other companies), offered to invest up to $5 billion in Intel.
But here’s what’s even more interesting: This news comes right after multiple reports that rival chipmaker Qualcomm is considering a friendly takeover of INTC…
Intel shares rose more than 2% today on the Apollo news after speculation over the Qualcomm deal bolstered them up over 3% on Friday.
This isn’t the first time Intel and Apollo have worked together. In fact, in June INTC sold Apollo an $11 billion stake in its manufacturing facility in Ireland.
But Why The Sudden Interest In A Long Forgotten Stock?
Well, the acquisition/takeover offers may come as welcome news for a tech company that has struggled for quite some time. Especially to find its footing in a new AI market.
And we’ve seen that hit their stock this year with shares already dropping 52%.
Back In August, INTC spoke about some cost-cutting measures that would involve laying off 15% of their workforce which would save an estimated $10 billion according to Intel.
One of the biggest problems Intel has been facing recently is the lack of sales for its “Intel Gaudi AI Processor”.
You see, INTC’s AI processor was released AFTER Amazon, Google, and Microsoft all began working on their own in-house AI chips… So they began at a huge disadvantage.
But it’s not all bad for Intel. As we’ve seen many times, it only takes a spark to light a fire for a big time stock — especially in the tech sector.
Last week, INTC’s CEO announced an expanded multibillion-dollar partnership with Amazon and the award of $3 billion in funding from the CHIPS Act…
Combine that with the Apollo news and a healthier bottom line and Intel actually has a shot to make some magic over the next 12 months.
— Nate Tucci
P.S. Speaking of stocks to watch… Did you see my Ford vs Tesla presentation?
