Intel: Five reasons why the bottom is in
- The CEO: Only time will tell if PattyG is the Tony Stark of semiconductors or its Joey Tribbiani. But dude is workin hard to improve products and cut costs, including via layoffs (15%, ouch!) and capital expenses (paused fabs in Poland & Germany)
- The USA: Uncle Sam's got Intel's back! It’s like getting a golden ticket from Willy Wonka, but instead of chocolate, it’s billions in funding to boost their foundry business. So far, $8.5B under Chips Act + $3B from DOD. Sweet! Talk about a sugar rush.
- The Rumored Buyers: I think the whole Qualcomm buying Intel was just a head fake Qualcomm CEO Cristiano has a history of trolling the plebs he doesn't like. Both companies have too much product overlap for this to have ever made sense.The Apollo $5B thing is more real as they have already invested $8B in Ireland
- The Tech: Their Lunar Lake Laptop AI CPU is finally kicking some butt. Using 3nm TSMC, it has the fastest process whereas the competition (AMD & Qualcomm) are still at 5nm process, and s.l.o.w. AF. Meanwhile on the foundry side, Intel got AMZN & other deals lined up for their 18A process with shipments for next year. Hallelujah!
- The Charts: The technicals look better everyday. It’s trading above the 12 and 55 moving averages like a pro athlete clearing hurdles. And the RSI? It’s giving us the thumbs up, saying, ‘Nope, not overbought yet, keep on keepin' on!’ It's up 27% since it hit rock bottom on September 10.
When you put all of this together, it's hard to imagine the stock price going lower. Investing in Intel now is like betting on a field goal kicker - mostly you'll win, sometimes you'll win big, but sometimes you can lose big too. But, hey, it sure beats being a Jags fan in 2024!
Agree? or No?