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Interest in artificial intelligence (AI) skyrocketed since OpenAI launched ChatGPT in November 2022. The industry is developing rapidly and is projected to expand at a compound annual growth rate of 37% until at least 2030. That trajectory would see the market hit close to $2 tri
The artificial intelligence (AI) market exploded last year, with excitement over the industry being a leading contributor to the Nasdaq Composite's 33% rise since last February.
What you need to know… The S&P 500 Index ($SPX ) (SPY ) on Tuesday closed down -0.60%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed down -0.17%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed down -0.79%. Stocks on Tuesday settled lower, with the Nasdaq...
If you only had to choose one chipmaker to wager on in 2024, which would you pick? Not everyone would choose Intel (
NASDAQ:INTC
), but it's actually a great processor producer that's somewhat underappreciated on Wall Street. All in all, I am bullish on INTC stock and am preparing for higher share prices this year.
Intel is a well-known American chipmaker, and the company could benefit if there's a resurgence in the market for personal computers (PCs). This could happen if AI-enhanced PCs become popular this year.
Furthermore, Intel stands out among U.S. chipmakers because the company has its own foundry business. That's in contrast to rivals like Advanced Micro Devices (
NASDAQ:AMD
), which rely on Taiwan Semiconductor (
NYSE:TSM
) to manufacture their microchips. This advantage could position Intel to substantially grow its business in the coming quarters.
This Insider Keeps Buying INTC Stock
Along with analyst ratings (which we'll explore in a moment), I like to monitor insider buying and selling activity closely. That's because when a corporate insider is buying shares of a company, that's a sign of confidence, and it makes me want to consider the stock.
Consequently, it's important to know that Intel CEO Pat Gelsinger is buying shares of his own company. On January 29, Gelsinger (through a trust and/or his own personal account) reportedly purchased 3,000 Intel shares for $130,100. Then, on February 1, the CEO bought another 2,800 INTC shares for $119,700.
After those purchases, Gelsinger's Intel stock hoard includes 66,386 shares in a personal account as well as another 456,915 shares in various trusts. The Securities and Exchange Commission (SEC) filings don't explain
why Gelsinger bought all of those Intel shares, but the CEO's apparent confidence should make reluctant investors wonder if there's a positive catalyst coming for Intel.
It's also noteworthy that Gelsinger bought all of those shares soon after INTC stock had its January 25 earnings dip. As you may recall, Intel beat the Q4-2023 consensus
earnings estimate of $0.45 per share, as the actual result was earnings of $0.54 per share. Yet, the market
dumped Intel stock because investors felt that the company's forward guidance wasn't optimistic enough.
I like to see a company's CEO buying shares when other people are selling them. Clearly, Gelsinger is all-in on Intel's future growth, and he's ready to ride with his company for the long haul.
Intel Could Get a $10 Billion Award from the U.S. Government
Undoubtedly, the U.S. government would prefer that powerful, AI-compatible chips come from American foundry businesses rather than from Taiwan Semiconductor. It's a matter that concerns America's financial future as well as U.S. security.
To that end, the Biden administration signed the Chips and Science Act into law in 2022. This law provides government funding to support the domestic production of certain products, including chips.
So, how will Intel benefit from the Chips and Science Act as a domestic chip-foundry business? The company
could receive a sizable cash award soon, as, according to a
Bloomberg report citing "people familiar with the matter," the Biden administration is "in talks to confer more than $10 billion in subsidies to Intel."
That's great news for Intel, especially after the company seemed to suffer a setback when it announced
a delay in the opening of an Ohio chipmaking plant. Surely, that announcement, along with Intel's aforementioned financial guidance, disappointed some investors.
Don't get the wrong idea here. One way or another, Intel is going to move forward with its plans to become a global chip-foundry business. For instance, Intel is reportedly looking to raise $2 billion or more to help fund a semiconductor fabrication factory in Ireland.
However, the Biden administration would certainly like to see Intel produce its processors domestically and create jobs in the U.S. Therefore, don't be surprised if the American government moves forward in the near future with substantial financial support for Intel.
Is Intel Stock a Buy, According to Analysts?
On TipRanks, INTC comes in as a Hold based on eight Buys, 24 Holds, and four Sell ratings assigned by analysts in the past three months. The
average Intel stock price target is $46.69, implying 6% upside potential.
Conclusion: Should You Consider Intel Stock?
The market didn't react positively to Intel's financial guidance recently. At the same time, though, Intel's CEO is buying his company's shares.
Moreover, Intel might soon receive a financial award from the U.S. government. Intel is a premier chipmaker with its own domestic foundry business, and this sets the company apart from some competitors while making Intel a target of government funding. That's why I remain bullish on INTC stock and am considering it for a long position this year.
Disclosure
Intel (NASDAQ: INTC) stock was gaining ground in Tuesday's trading, bucking a trend that was impacting artificial intelligence (AI) stocks. The semiconductor company's share price was up 2.1% as of 3:13 p.m. ET, according to data from S&P Global Market Intelligence. Meanwhile
AMD (NASDAQ: AMD) stock is falling in Tuesday's trading. The semiconductor company's share price was down 5.4% as of 10:15 a.m. ET, according to data from S&P Global Market Intelligence. Meanwhile, the S&P 500 index was down 0.7%, and the Nasdaq Composite was down 1.3%.
The worst performing sector as of midday Tuesday is the Technology & Communications sector, showing a 1.0% loss. Within the sector, Applied Materials, Inc. (Symbol: AMAT) and Advanced Micro Devices Inc (Symbol: AMD) are two large stocks that are lagging, showing a loss of
What you need to know… The S&P 500 Index ($SPX ) (SPY ) today is down -0.50%, the Dow Jones Industrials Index ($DOWI ) (DIA ) is up +0.03%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is down -0.88%. The broader market is under pressure today as weakness...
In early trading on Tuesday, shares of AstraZeneca topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.9%. Year to date, AstraZeneca plc has lost about 2.7% of its value.
A scorching rally in Nvidia's shares this year came to a halt on Tuesday as investors worried if the high-flying chip designer's quarterly results would justify its towering valuation.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ (Symbol: QQQ) where we have detected an approximate $602.8 million dollar inflow -- that's a 0.2% increase week over week in outstanding
In today's video, I discuss recent updates impacting Intel (NASDAQ: INTC) and Nvidia (NASDAQ: NVDA). Check out the short video to learn more, consider subscribing, and click the special offer link below.
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The First Trust NASDAQ-100 Equal Weighted ETF (QQEW) made its debut on 04/19/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.
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In today's video, I take a closer look at Super Micro Computer (NASDAQ: SMCI) stock and compare it to other companies in the semiconductor industry such as Nvidia, AMD, Dell, and Hewlett Packard Enterprise. You will be surprised by the conclusion.
Advanced Micro Devices (AMD) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Nvidia (NASDAQ: NVDA) probably has helped many investors along their path to wealth in recent times. The top technology company, which jumped into the forefront thanks to its artificial intelligence (AI) chips, has seen its shares climb nearly 400% in just under 14 months. So, if