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Intel (
NASDAQ:INTC
) used to be the U.S. chip champ, but it lost its footing in recent years. However, investors should prepare for Intel to regain its former status as America's first-choice processor producer. Overall, I am bullish on INTC stock and am ready for it to possibly stage a swift recovery before the end of 2023.
Even though the company has famously lost some of its market share, Intel is still a renowned semiconductor manufacturer. This year, investors have been so enamored with rival chipmakers Advanced Micro Devices (
NASDAQ:AMD
) and Nvidia (
NASDAQ:NVDA
) that stock traders have practically forgotten about Intel.
Ignoring Intel is a mistake, though, since the company is still a chipmaking giant, and INTC stock's rebound could be tremendous. Soon enough, I expect the market to recognize Intel's full value, but by then, it might be too late to invest as the
share price could be much higher than it is today.
Intel Addresses Shortage Issues with New Irish Fab
In the chipmaking business, people sometimes refer to a semiconductor fabrication factory as a "fab." The demand for microchips is intense, and Intel is reportedly having
trouble finding chipmaking employees in its German plant. However, the company is pressing forward and
establishing a new fab in Ireland.
Clearly, Intel sees Europe as a hub of semiconductor manufacturing activity. The company's Fab 34 factory in Leixlip, Ireland, joins Intel's fabs in Magdeburg, Germany, and the company's planned assembly and test facility in Wrocław, Poland.
Ann Kelleher, executive vice president and general manager of Technology Development at Intel, described the production volume at the company's Irish fab as "high-volume." Perhaps the establishment of these Europe-based fabrication factories will help Intel achieve its stated objective of "regaining leadership in process technology by 2025."
In other words, the narrative here isn't that Intel is already the global chipmaking leader; that's not realistic. Rather, Intel is on the comeback trail with a compelling growth story after several challenging years. As Intel CEO Pat Gelsinger put it, the company is, hopefully, "on the path back to process leadership."
Make no mistake about it - Gelsinger is firing a direct salvo at Intel's competitors with these new processors. Audaciously, the CEO warned that there are only three types of chipmakers: "You're big, you're niche, or you're dead." Where does Gelsinger's company fit in, then? "Intel is way too big to be niche, so we'd better be really big," he clarified.
Intel Reminds the Market of Its Innovator Status
Meanwhile, back in the U.S., Intel rolled out some new hardware products at its recent
innovation day event. Even though
not every observer was impressed with Intel's new offerings, Intel Innovation 2023 nonetheless featured some notable AI-compatible processors.
The star of the show was Intel's 14th-generation personal computer chip, known as Meteor Lake. This reportedly includes an
AI co-processor inside of its CPU for robust processing and graphics performance.
Furthermore, Intel featured its new Xeon processors, which are designed to power data centers. Not only that, but Intel also showed off its Arrow Lake and Lunar Lake processors, which will be the successors of the already-powerful Meteor Lake chips. These are set to be released in 2024. Additionally, Intel has a processor that's under development, code-named Panther Lake, which the company expects will be available by 2025.
Is Intel Stock a Buy, According to Analysts?
On TipRanks, INTC comes in as a Hold based on six Buys, 20 Holds, and five Sell ratings assigned by analysts in the past three months. The
average Intel stock price target is $36.13, implying 1.6% upside potential.
Conclusion: Should You Consider Intel Stock?
With the company's new, powerful processors, Gelsinger and Intel are basically saying, "Go big or go home." In 2023, some observers may be underestimating Intel's potential to regain market share in the coming quarters from the likes of Advanced Micro Devices and Nvidia.
Plus, Intel is going all-in on Europe as a chip hub with the company's new Irish fab. Therefore, I'm preparing for big moves from INTC stock, and I believe it's a great time for enterprising investors to consider a share position for the long term.
Disclosure