Why investors should buy INTC stocks when weak

Intel (NASDAQ:INTC) Mobileye receives very little attention. The unit develops self-driving cars and advanced driver assistance systems. While EV stocks enrich speculators, INTC stocks are stuck. Chip Giant Could Reduce Dependence on Personal Computer Market and Bring Investor Attention to Mobileye; then his actions could increase like those of Ambarella (NASDAQ:AMBA) made.

Source: Kate Krav-Rude / Shutterstock.com

But this scenario is a dream. For now, Intel is launching its desktop chips in an effort to catch up Advanced micro-systems (NASDAQ:AMD). In the short term, AMD will be the number one supplier of premium gaming chips. Intel, however, is well positioned to increase its market share in the consumer and consumer markets.

Alder Lake to increase INTC stock

Earlier this month, Intel launched a refresh of its processors. The Core i9 12900K receives rave reviews. Investors should read critics’ praise for Intel’s renewed lineup. For the holiday season ahead and through to 2022, there’s a good chance consumers will upgrade and choose Intel over AMD.

PC player gave Intel’s 12900K a score of 89%. The site said the chip had excellent single-threaded performance, improved multitasking, and was the best supporting platform for DDR5 and PCIe 5.0.

DDR5 is the company’s next-generation memory chip, and investors expect demand for the product, which is as good as AMD’s competing offerings, to accelerate. Gamers need these faster chips to get the most out of their processors and graphics cards.

The architecture of DDR5 has more cores, bandwidth and speed than its predecessors. This is Intel’s first chip on the 7nm process node. The company’s departure from the 14nm process node is long overdue. For many years, the process nodes of Intel products have been constantly shrinking, lowering their production costs and increasing their performance.

Intel is now taking a different approach. It added to its processors both P cores, or performance cores, and E cores, or efficient cores. Gamers want more P-Cores and clock speeds as high as 5.2 GHz. Intel has an advantage over AMD because these features minimize the latency of Intel chips.

Intel built the electronic cores using its legendary Atom architecture which uses relatively little power. As a result, E-Cores will increase the performance of multithreaded processors and gaming processors.

Game actions

Investors may also consider buying shares of Corsair game (NASDAQ:CRSR) alongside Intel shares. Corsair recently has released strong revenue guidance for the year 2021. It forecasts net revenue of between $ 1.825 billion and $ 1.925 billion and EBITDA, excluding certain items, of $ 190 million to $ 205 million.

As supply constraints hurt Corsair’s prospects, the premium gaming vendor offers chip-powered solutions from AMD and Intel. Look for Corsair customers to choose Intel-powered systems, validating this article’s bullish stance on Intel.

Just value

Of the 22 analysts covering Intel stocks, 12 are rated “neutral” or “hold”. Analysts have a 12-month average price target of $ 53.81 on stocks, TipRanks reported.

Investors should ignore analysts’ cautious outlook. Unless speculators panic and sell tech names in general, INTC stock is unlikely to fall further. Its rolling price-to-earnings ratio is less than ten times, and the stock pays a healthy dividend of $ 1.39 per year, which works out to a return of 2.8%.

It will take a few months for consumers to appreciate Intel’s Alder Lake chip. As more and more gamers praise the product, the sales of the chip will increase.

Risks

Intel has fooled hopeful investors ahead of each of its earnings reports. The stock generally rallies in anticipation of increases in the chipmaker’s forecast. but falls when Intel lowers its forecast and reports delays in production or research and development.

Those days are probably over. Intel’s leadership has improved with the appointment of its new CEO, Patrick Gelsinger. VMware (NYSE:VMW) for eight years allowed him to acquire relevant experience in software.

The bottom line

With few tech stocks on the market, Intel is the exception. It has disappointed investors several times in the past. Those days are probably over, because of its new CEO. Intel lags behind AMD in some areas, but Intel will thrive as it serves the needs of the consumer and budget markets.

As of the publication date, Chris Lau does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.


Source link