Intel Stock: Turning Bullish For The First Time In Years (Rating Upgrade)

Summary:

  • Intel is undergoing significant restructuring under CEO Pat Gelsinger, including cost-cutting, asset divestitures, and focusing on the core semiconductor business amid intense competition.
  • When the new CEO was appointed in 2021, I thought it was the right move but decided to stay on the sidelines until the company delivers tangible results.
  • Intel is expected to present a new reorganization plan to the board later this month, but this is not the main reason why I am changing my stance for Intel.
  • The output of a conservatively-built DCF model suggests Intel’s current valuation fails to reflect the company’s turnaround potential accurately, creating a window of opportunity for contrarian investors.

Intel Headquarters

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Intel Corporation (NASDAQ:INTC) is a company that I have closely followed for many years because of the strategic importance of the company as a U.S. chipmaker. It would not be true if I were to claim that I was

Fiscal year Projected revenue Implied YoY revenue growth
2024 $52.06 billion (4%)
2025 $55.96 billion 7.5%
2026 $59.88 billion 7%
2027 $63.47 billion 6%
2028 $66.64 billion 5%


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in INTC over 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.

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