Intel and AMD have each tripled their value in a matter of months, leaving shareholders staring down a decision that cuts both ways. The case for staying in is compelling, and so is the case for walking away.
Intel CEO Lip-bu Tan and his Broadcom counterpart Hock Tan have sounded the alarm over the biggest near-term concern that could derail the artificial intelligence boom. The massive investment in artificial intelligence has been described as one of the biggest bets in American industry, with billions of dollars flowing into data centers, advanced chips and computing infrastructure.
Intel and Broadcom warned that access to capital could emerge as a major constraint on the artificial intelligence boom. "[What] I think might be the biggest constraint is capital," Hock Tan said at the DBS Asia Future Forward Conference in Singapore on Monday.
Intel shares have already surged more than 200% this year, but Wall Street still calls the stock a hold. Here is what bulls and skeptics are each missing about where INTC goes from here.
A chipmaker that lost billions last year now commands a valuation that dwarfs two of the world's most profitable consumer giants, and the math holding that together is razor thin.
Intel and AMD shares traded lower on Thursday as a broader selloff in US equities intensified, with surging oil prices and Treasury yields raising concerns about inflation and interest rates. Intel stock INTC fell about 6%, while AMD declined over 4%.
Intel Corporation remains a buy in my books despite recent volatility tied to Terafab headlines and Musk's TSMC discussions. My thesis is grounded in management's execution, sequential gross margin improvement, and ongoing price increases. INTC's Q3 guidance targets $15.8–$16.8B revenue, 42% non-GAAP gross margin, and $0.38 EPS, supporting continued upside.
Marvell's management just handed Wall Street a revenue target so far above analyst models that the stock surged double digits, yet one key risk could make the whole thesis collapse before the decade ends.
Intel has already left the S&P 500 in the dust, and Jim Cramer is doubling down on its CPU business just as analysts debate whether the market has gotten ahead of the facts.
Intel Corp (NASDAQ:INTC, XETRA:INL) (Intel Corp (NASDAQ:INTC, XETRA:INL), Intel Corp (NASDAQ:INTC, XETRA:INL)) will remain involved in Elon Musk's Terafab semiconductor project, easing concerns that Taiwan Semiconductor Manufacturing Company could displace the US chipmaker from the planned Texas facility. Intel chief executive Lip-Bu Tan confirmed the company's continued participation on Wednesday after Musk's disclosure that he was holding early-stage discussions with TSMC about a potential role in Terafab, reported Bloomberg.
Intel (INTC) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Intel shares showed signs of an early recovery in premarket trading Wednesday, rising 0.3% before the opening bell after falling 2% Monday and 3% Friday. The move followed Elon Musk's clarification that his business empire plans to build and operate the Terafab chipmaking project independently.