BUY Intel (INTC)
Intel had a terrible 2022 due to the chip industry entering a cyclical decline and rivals eroding its market dominance. However, investors now hope the new CEO can return the business to its previous glories.
In "IDM 2.0," Gelsinger offers a solid strategy that updates Intel's "integrated device manufacturing" model. His plan seeks to transform Intel into a best-in-class semiconductor business capable of achieving gross margins above 60% and operating margins above 40%, even though it may take some time to materialize fully, and the journey may be bumpy.
Intel has provided more information about its goals for the desktop and mobile PC sectors by outlining its consumer CPU roadmap for the next two to three years. With the recently released Raptor Lake-S desktop processors, 2023 has here. In the upcoming months, laptops with Raptor Lake-P and HX mobility CPUs should be available in stores. In addition, a Raptor Lake-S revamp for the DIY market is something we anticipate happening in the second and third quarters. Nothing new, Higher clock speeds on the same processors.
It is not surprising that Intel stopped AMD's growth in the client CPU market. However, according to reports, 13th-generation Raptor Lake processors from Chipzilla exceed AMD's options in crucial categories like cost, gaming performance, content production, specifications, and value for money.
Intel could surpass analysts' predictions, and the stock price could rise if it keeps performing well in the client processor market and reverses its fortunes in the server market with its new chips. In addition, the good dividend yield, low valuation, and promising turnaround strategy makes $INTC a buy for the long term.
Source: Yahoo Finance