Sunday, October 4, 2020

Intc stock: Intel Stock Is a Tremendous Value at $50

 Here is the article. 

To be fair, Intel did receive a benefit from the corporate tax cut. That’s very real in the sense that it gives the company more profits with which to pay dividends and buy back stock, however it doesn’t reflect improvement in the structural quality of the business.

That said, earnings are up more than 150%; obviously that’s not just tax cuts. Since 2016, Intel’s revenues are up from $59 billion to $72 billion. That’s healthy growth. And management’s pre-Covid guidance saw this climbing to $85 billion annually over the next few years. The idea that Intel is totally stalled out simply isn’t accurate. What’s true is that the CPU business has minimal growth prospects.

However, Intel has diversified well-beyond its most famous operations. Going forward, automotive chips and services (the old Mobileye business) along with nonvolatile memory, programmable solutions, and more can add large chunks of incremental revenue for Intel stock.

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