Intel Appears to be a good long term play

[SOL]

Here is a counter argument. From me!

In the immediate term, there is upside potential. This is based on the Chart, and the two potential catalysts I name above.

However, until 2024 at the earliest, Intel will be bleeding Cash on expansions. The P/E ration may not get affected, but Cash Flows will be impacted. Fewer share buy backs, fewer dividend raises, if any.

Market is skeptical there will be demand for Fab, or if it can can catch up with AMD. Producing Semi's in the U.S. is 30% more expensive than in the East.

Also, we have a bottleneck in Semi's. TSM and others also are pouring Capex into Fab's. Risk of over supply / capacity at some point.

We expect Intel, IBM and other semiconductor manufacturers to shift to South East Asia to reduce costs. WHile they will build in America because they are almost guaranteed to receive substantial subsidies (maybe to the tune of 90%) they will slowly but surely focus on South East Asia. Vietnam is something to keep in mind. The main reason for this. USA and Europe are going to focus on building a power zone that can serve as a deterrent to China

As for oversupply given the way AI and robotics are taking off and the huge number of chips both these industries will require, we suspect that demand will continue to outstrip supply for the foreseeable future.

[Centeron631]

excuse me for my ignorance on this. do the words " a monthly close of" refer to the callendar end of the month or the close of any day on the Monthly chart? if the former why is the end of the month so important? thks

[SOL]

excuse me for my ignorance on this. do the words " a monthly close of" refer to the callendar end of the month or the close of any day on the Monthly chart? if the former why is the end of the month so important? thks

Its based on the end of the month, hence the term monthly close. A weekly close, means it would need to end the week above the specified price.

Pattern analysis combined with TA reveals that monthly closes at or above a certain price usually leads to higher prices.

[AstuteShift]

Eventually the cycle of dominance for AMD/TSM will dwindle and INtel will be a top dog

Never underestimate big blue, patience is needed for this stock

[Yodean]

Intel Corp has launched a new chip for blockchain applications such as Bitcoin mining and minting NFTs to cash in on the crypto boom.

The chip will ship later this year with first customers including Block, the Jack Dorsey-led firm formerly called Square, and London-listed crypto mining company Argo Blockchain.

In an announcement on Friday, Intel said it hopes to contribute to the development of blockchain technologies by producing energy-efficient accelerators which reportedly have “1000x better performance per watt” than existing alternatives.

“We are mindful that some blockchains require an enormous amount of computing power, which unfortunately translates to an immense amount of energy,” the statement continued, noting that customer demand for “scalable and sustainable solutions,” is driving the company’s push into creating computing technologies at scale.

Chip designer Nvidia, whose graphics cards are used for mining activities, has developed a separate chip for Ethereum mining. Intel said the newly developed chip will help to “usher in the era of the metaverse and Web 3.0.”

*****

https://www.cityam.com/intel-new-crypto ... ernatives/

INTC is "Intel-ligent," to involve itself in the emergent blockchain and metaverse mega-trends. Quietly setting the foundations for dominance ... like a Ninjedi.

[Budge]

"Global semiconductor sales top half a trillion dollars for first time as chip production gets boost

"Global semiconductor sales topped half a trillion dollars for the first time, as companies ramped up production to meet demand amid a worldwide chip shortage, a top industry association said.

In 2021, global semiconductor industry sales reached a record $555.9 billion, up 26.2% year on year, the U.S.-based Semiconductor Industry Association (SIA) said on Monday."

"It has also led to governments and lawmakers around the world scrambling to secure chip supplies and invest to bring manufacturing of semiconductors closer to home."

https://www.cnbc.com/2022/02/15/global- ... -time.html

[SOL]

"Global semiconductor sales top half a trillion dollars for first time as chip production gets boost

"Global semiconductor sales topped half a trillion dollars for the first time, as companies ramped up production to meet demand amid a worldwide chip shortage, a top industry association said.

In 2021, global semiconductor industry sales reached a record $555.9 billion, up 26.2% year on year, the U.S.-based Semiconductor Industry Association (SIA) said on Monday."

"It has also led to governments and lawmakers around the world scrambling to secure chip supplies and invest to bring manufacturing of semiconductors closer to home."

https://www.cnbc.com/2022/02/15/global- ... -time.html

It is a sleeping giant that we (all the people behind TI) will use every opportunity to add to our positions. This would be called a buy and bury play. end of story, forget the short term aberrations focus on the long term trend for it will pay handsomely

And this acquisition will be accretive in the years to come

Intel's acquisition of Tower Semiconductor 'is a really significant growth opportunity
Intel has agreed to buy Tower Semiconductor for $5.4 billion, the company announced Tuesday, as it seeks to meet rampant demand for computer chips.

Intel shares were up rose 1.8% Tuesday. Tower Semiconductor rose 36.4%.

The deal will give Intel a stronger foothold in specialty technologies in which Tower works, like radio frequency and industrial sensors. Intel also said Tower’s existing production facilities are “geographically complementary,” with a presence in the U.S. and Asia.

And it’s a continuation of Intel CEO Pat Gelsinger’s strategy of making massive investments to boost production.

Intel has been working to meet the large global demand for chips, which has caused an ongoing shortage, in part by announcing in January an up to $100 billion investment in Ohio into what could become the world’s largest semiconductor production complex.

“First, we have to invest to catch up,” he said during the company’s Q4 earnings call in January. “We’re behind on capacity, you know, we would lust after having some free capacity today,” he added. Gelsinger took over as CEO a year ago.

Intel will pay $53 per share, exceeding Tower’s closing price of $33.13 on Monday. They expect the deal to close in about 12 months.

https://www.cnbc.com/2022/02/15/intel-t ... llion.html

[Yodean]

Nvidia Corp (NVDA.O) is interested in exploring Intel Corp (INTC.O) as a foundry for making its chips, Chief Executive Officer Jensen Huang said on a call with reporters on Wednesday.

"They're interested in us using their foundries. We're very interested in exploring it," Huang said. But he added that foundry discussions take a long time as it's about integrating supply chains and not like "buying milk".

Earlier last year, Intel which was making mostly chips it designed, decided to expand its business into making chips that others design as well and has announced several multibillion-dollar projects for new manufacturing centers in the United States and Europe.

Intel's shares rose as much as 2.5% following Huang's comments.

Today, Taiwan Semiconductor Manufacturing Co.(2330.TW) builds the bulk of Nvidia chips.

*****

Disclosure: I own all three.

[AstuteShift]

Never ever underestimate big blue, the sleeping giant will become the juggernaut soon

[harryg]

I think Big Blue is IBM


Intel's official nickname is

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

eh? what happened?



But that will change when they get moving.

It's a bit like trying to change the direction of an oil tanker.

[Yodean]

[SOL]

Intel Update


Intel Monthly Chart


Most of the indicators are trading in the oversold ranges. A monthly close at or above 56 should provide enough energy for a test of the 65 to 70 ranges. However, until then, it is likely to experience a lot of volatility.

Weekly chart of Intel

On the weekly chart, we have a positive divergence signal. New lows but higher lows in the MACDs; the MACDs are also trading in the oversold ranges but not as deep as they are in the monthly charts. However, as the stock is trading in the oversold ranges on both the weekly and monthly timelines, it indicates/suggests that the current weakness could be a buying opportunity.

However, do not overinvest in this stock or any other stock. Follow the investing rules which states that one should invest equals sums of money into each play.

[Yodean]

International semiconductor consortium ISMC will invest $3 billion in India's southern Karnataka state to set up a chip-making plant, the state government said on Sunday.

ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor. U.S. chip giant Intel Corp (INTC.O) has announced plans to acquire Tower.

India’s first semiconductor fabrication unit is expected to generate more than 1,500 direct jobs and 10,000 indirect jobs, the state's investment promotion division said in a tweet.

ISMC and Indian conglomerate Vedanta Ltd (VDAN.NS) have applied for Prime Minister Narendra Modi's $10 billion incentive plan to push companies to set up semiconductor and display operations in India, the government's next big bet on electronics manufacturing.

India's semiconductor market is forecast to grow to $63 billion by 2026 from $15 billion in 2020, the government says.

https://www.kitco.com/news/2022-05-02/C ... ataka.html

[SOL]

International semiconductor consortium ISMC will invest $3 billion in India's southern Karnataka state to set up a chip-making plant, the state government said on Sunday.

ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor. U.S. chip giant Intel Corp (INTC.O) has announced plans to acquire Tower.

India’s first semiconductor fabrication unit is expected to generate more than 1,500 direct jobs and 10,000 indirect jobs, the state's investment promotion division said in a tweet.

ISMC and Indian conglomerate Vedanta Ltd (VDAN.NS) have applied for Prime Minister Narendra Modi's $10 billion incentive plan to push companies to set up semiconductor and display operations in India, the government's next big bet on electronics manufacturing.

India's semiconductor market is forecast to grow to $63 billion by 2026 from $15 billion in 2020, the government says.

https://www.kitco.com/news/2022-05-02/C ... ataka.html

This is a play that you need to let simmer, buy and hold and use the drip function, so you get more shares instead of the dividend. if you have extra cash when it is trading in the oversold ranges as is the case now sell puts. Better yet sell puts on down days a Eric alluded

[Yodean]

Intel Corp (INTC.O) on Tuesday launched a new chip called Gaudi2 focused on artificial intelligence computing, as the chip manufacturer makes a bigger push into the AI chip market currently dominated by Nvidia Corp (NVDA.O).

Gaudi2 is the second generation processor by Habana Labs, an Israeli AI chip startup Intel bought in late 2019 for about $2 billion.

Prying market share away from Nvidia has been a challenge as many AI researchers and companies have been accustomed to using Nvidia's software platform CUDA.

"CUDA is not a moat that Nvidia can really stand on for long," said chief business officer at Habana Labs Eitan Medina, adding that Intel's software platform is open standard, free to download and use from GitHub, the software development site.

Medina said the Gaudi2 was twice as fast as Habana's previous AI chip and manufactured at Taiwan Semiconductor Manufacturing Co's (2330.TW) 7-nanometer transistor technology from 16-nanometers previously.

Intel also launched a new chip called Greco for inferencing work: taking an AI algorithm and making a prediction or identifying an object.

Sandra Rivera, who heads Intel's data center and AI, said the AI chip market is estimated to grow some 25% a year in the next five years to reach around $50 billion. "We intend to invest and innovate to lead this market," she said, adding that increasingly the investments will be in software, both for expanding Intel's team and buying other companies.

https://www.kitco.com/news/2022-05-10/I ... arket.html

*****

INTC is also great for DRIPing, SCCing, and SCSPing.