Comment:
Intel is facing a lot of headwinds. The great news for Intel is that Microsoft and Apple make up less than 5% of Intel’s $80 billion per year revenue which has grown the last few years. Does it hurt, sure it hurts. But from a profitability stand point, the deal that Apple and Microsoft have with Intel will be quickly replaced with higher margin customers. Demand in this space is tremendous now and over the next 10 years.
Over the last 2-3 years Intel had increased its fab capacity by 100% and they are running at full capacity and then some.
Intel’s investment in Cloud, AI, and autonomous driving will keep Intel growing revenue and profits.
Intel’s 2020 revenue is expected to be close to $80 Billion with a “B”!!!! Net profit of almost $18-$19 Billion!
To put that in perspective, If you add up AMD’s, Nvidia’s, and Amazon’s net Profit for the year, you get close to Intel’s! Think about that for a moment.
Facts are, you can’t deposit market sentiment in the bank, you can only deposit $$!
In the next 3-5 years, I think investors that bought at these levels will be very happy with their investment. Intel will prove to be a gem in this space that the investors that pay attention to fundamentals will be greatly rewarded
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