Valuable Stocks to Buy Now-INTEL

  Valuable Stocks to Buy Now-INTEL New CEO to revive the Old Chip Company. Semiconductor manufacturer Intel INTC (NASDAQ) $53,28 -0,21 (-%0,39) was grappling with manufacturing challenges, while competitor Advanced Micro Devices  AMD (NASDAQ) $102,90 +2,55 (+%2,54) once again dominated the market. From 2011 to 2017, AMD's products were built on an architecture that was too unsuccessful to compete with Intel. But that changed with the release of AMD's Zen-based processors in 2017, now far surpassing Intel in its fourth generation production. That's why Intel stepped in to recapture the market.

Big bets on production

Led by new CEO Pat Gelsinger, Intel has made some bold decisions that set the stage for an epic comeback. On the contrary, earlier this year, an activist hedge fund urged Intel to shut down its business (12 years of production), as AMD and IBM have done. Manufacturers such as contract manufacturer TSMC, Samsung set aside astronomical amounts for investment in the world of chip manufacturing. While the easiest thing for Intel to do would be to get out of production, under Gelsinger, Intel chose to do the opposite.

Valuable Stocks to Buy Now-INTEL

  Nevertheless, implementing Gelsinger's strategy will not be cheap. The company announced that it has invested $20 billion in two new plants in Arizona and aims to pour $95 billion into new facilities in Europe over the next decade and acquire GlobalFoundries for approximately $30 billion. “I hope that trend will continue and we will be a consolidator,” Gelsinger said in an interview with the Wall Street Journal in August.

Time to buy Intel stock

In fact, there is a global shortage of semiconductor manufacturing capacity, and this could take years. US and European semiconductor manufacturing capacity is expected to be valuable in the coming years, and Intel is well positioned to deliver it. It is envisaged that Intel may even manage to get some government subsidies to help fund new factories. Intel's forward price-to-earnings ratio is about 11, so Intel stock is definitely a bargain based on current earnings. But the reason to invest in Intel is its future potential. While this is not a fast process, it is true that Gelsinger has the potential to increase Intel's profits as he re-establishes the company.  

Source: The Motley Fool

 

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