Intel: Approaching Buy Territory, But Short-Term Risks Should Not Be Ignored

Summary:

  • As expected, Intel’s share price has significantly underperformed the sector even after a major rally since the beginning of the year.
  • The market is already pricing-in earnings recovery which brings significant risks for returns in the short-term.
  • Overall, I remain optimistic about Intel’s strategy and the turnaround of the business, but I am not rating it a Buy yet.

Latest Consumer Technology Products On Display At Annual CES In Las Vegas

David Becker

As emotions are running wild in the semiconductor sector, investor hype is driving share prices of the winners to exuberant levels of 20 times forward sales and 40 times forward Non-GAAP earnings.

As dangerous as this


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Please do your own due diligence and consult with your financial advisor, if you have one, before making any investment decisions. The author is not acting in an investment adviser capacity. The author's opinions expressed herein address only select aspects of potential investment in securities of the companies mentioned and cannot be a substitute for comprehensive investment analysis. The author recommends that potential and existing investors conduct thorough investment research of their own, including a detailed review of the companies' SEC filings. Any opinions or estimates constitute the author's best judgment as of the date of publication and are subject to change without notice.

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