Intel: Renewed AI Opportunities May Prompt A Solid GARP Play
Intel on Monday said that the first two cutting-edge machines from ASML Holding are "in production" at its factories, with early data indicating they are more reliable than the previous generation of machines.
Intel (INTC -1.93%) stock is losing ground Monday amid a broader tech-sector slide. The semiconductor company's share price was down 1.6% as of 3:20 p.m.
Today's Morning Trade focuses on Intel (INTC), which Alan Knuckman believes has plenty of room to run. He thinks a new floor can be built into its stock price following recent optimism from the Trump administration on the U.S. becoming an A.I.
Intel joins short list of companies doing well without permanent CEOs, but the balance of corporate power still tips toward having someone at the helm
Despite a long list of issues plaguing chip giant Intel (INTC -4.68%), the company has made meaningful progress catching up to TSMC in semiconductor manufacturing. Intel was stuck on its heavily delayed 10 nanometer (nm) process for a long time, which caused all sorts of problems on the product side of the business.
Steven Dickens discusses all things A.I. He mentions Intel (INTC) as a company that has lots of promise but now without lots of questions if its assets acquired by another company, particularly TSMC (TSM).
[00:00:04] Doug McIntyre: So Intel, the shares of which are down almost 70 percent over the last five years, may have a couple of suitors for pieces of the company for this to work Intel would have to be broken up, but if you're a shareholder [00:00:20] Lee Jackson: I think it's like that's just Inconceivable.
Intel INTC has been showing a remarkable surge in its stock price, marking its longest winning streak since the 1980s. The strong momentum is driven by a combination of political developments, strategic business moves and market speculation.
Takeover rumors are increasing as Intel's (INTC -6.10%) management troubles attract potential suitors.
The gigantic strain of building out the US semiconductor-FAB network has Intel expending a lot more on CAPEX than cash from operations. Intel still trades at around 1 X book value even after the run up. With an average market price for comps' average book value of 4.46 X for this group currently, even dropping Intel to 3 X seems reasonable.
It's all bears on today's Options Corner. Tom White turns to unusual options activity in Intel (INTC), TSMC (TSM) and Micron (MU) to discuss the reasoning behind investor positioning.