CA - Intel: Capitalize On The Downtrend

2024-06-03 15:16:02 ET

Summary

• Intel stock has dropped 47% over the last three years, presenting a good entry point for long-term investors.
• Following a 29% pullback, the convergence of technical indicators suggests a strategic opportunity to establish or intensify long positions using DCA, with $31 to $25 being the ideal entry range.
• Intel's financial performance has been dismal since 2020, with significant revenue, profitability, and EPS declines driven by the end of its Apple partnership, increased competition, and geopolitical headwinds.
• Despite financial struggles, Intel's focus on AI innovation and internal foundry technology aims to unlock $10 billion in savings by 2025, positioning the company for a strong recovery and growth in the AI chip market.

Investment Thesis

Intel ( INTC ) stock has plummeted by about 47% over the last three years. This underwhelming performance saw the stock trail its peers, some of whom registered strong double-digit growth. Despite a 40% drop from its December 2023 high, the current downtrend presents another great entry point for long-term investors....

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