Intel Corporation (NASDAQ:INTC ) Goldman Sachs Global Semiconductor Conference Call May 30, 2024 10:50 AM ET Company Participants John Pitzer - Corporate Vice President of Planning & Investor Relations Conference Call Participants Toshiya Hari - Goldman Sachs Toshiya Hari We'd like to get started. Thank you so much, everyone, for joining us.
U.S. domestic semiconductor manufacturing expansion is critical. The CHIPS and Science Act is spurring billions in new projects.
Intel (NASDAQ: INTC ) stock is one many investors are watching. Unlike peers in the high-performance chipmaking space, Intel's focus on the PC and other consumer-focused markets can be viewed as a good or bad thing, depending on who you talk to.
Technology stocks continue to outperform and power the market higher. So far in 2024, the Nasdaq Composite index that is laden with tech securities is up 15%, bringing its 12-month gain to 30%.
Intel's shares have underperformed recently, but there are reasons to believe that the company will return to growth in 2024. Intel's client computing business has been improving, and federal subsidies could boost its foundry business. The launch of Intel's Gaudi 3 AI accelerator and the reorganization of its foundry business are positive signs for future growth.
Once the undisputed king in the semiconductor industry, Intel (NASDAQ: INTC ) stock has faced significant challenges in recent years. While the company remains a major player, its dominance has eroded due to fierce competition and internal missteps.
Potential drivers for Intel to improve its position include positive trends in PC shipments and global capital expenditures in the data center segment. If Intel's 18A chip gains market appreciation and the company can ramp up mass production before the release of TSMC's 2 nm chip, Intel's market share could expand. We expect the company's revenue to total $56 bln (+3% y/y) in 2024, and jump to $65.3 bln (+17% y/y) in 2025.
When Microsoft Corp. unveiled a line of PCs and software this week designed to make the most of the artificial-intelligence revolution, it showcased a main processing chip — but it wasn't from the software giant's usual chip partner.
Intel launched its Meteor Lake laptop CPUs late last year, but the chips could be outclassed by Qualcomm's latest PC CPU efforts. Intel plans to follow up Meteor Lake in short order with Lunar Lake, with systems set to be available for the holiday season this year.
Trade tensions between the world's two largest economic powerhouses, the United States and China, resume. The Biden Administration has chosen to not only continue with Trump-era economic policy that has pitted the two countries against one another but also sought to intensify matters.
Nvidia stock has risen 530% in value over the past three years. This huge performance has caused investors to look at other chip stocks like Intel.
Don't sleep on Intel (NASDAQ: INTC ) even though Intel stock is clearly overshadowed by rivals Nvidia (NASDAQ: NVDA ) and AMD (NASDAQ: AMD ) in the high-performance computing world. When Intel announces the launch of its Intel 20A and Intel 18A investors will have something to get excited about.