TSM - Intel's Stock Is Stuck In A Value Trap
2024-01-28 20:44:39 ET
Summary
- Intel guided an underwhelming Q1'24 and may experience lackluster year as the firm faces challenges in the data center, telco, and consumer markets.
- Intel is faced with a soft macroeconomic backdrop with potentially softening corporate IT and telco project spend.
- Intel's roadmap includes the release of the Intel 20A and 18A processes, which will bring them back into competition with rivals.
Intel ( INTC ) ended FY23 in a very lackluster fashion with underwhelming q1’24 guidance with the promise of an exceptionally strong roadmap years down the road. With their sights set on becoming the go-to foundry for advanced chip packaging, Patrick Gelsinger portrayed optimism in becoming the second largest foundry by 2030. With soft guidance for q1’24, I anticipate another lackluster year for Intel as the firm navigates a softer data center, telco, and consumer market. I provide INTC shares a SELL recommendation with a price target of $35.08/share at 2.75x eFY24 sales....
Intel's Stock Is Stuck In A Value Trap