NVDA - Why Intel Stock Deserves A 'Strong Buy' Rating
2024-07-17 12:36:07 ET
Summary
- Looking at the financials, it's no wonder that investor skepticism about Intel's AI efforts and slow data center recovery has further impacted the stock price performance in the recent past.
- However, I think Intel's revenue growth in key segments like CCG and DCAI shows promising signs for future profitability.
- The company has ambitious goals for its foundry services, hoping to be the second-largest external foundry company by 2030; it has already secured large orders from Microsoft and others.
- The current EPS forecasts may be too pessimistic if Q1 marked the bottom of the cycle and management's cost-cutting initiatives helped boost Intel's margins already in Q2.
- Intel's valuation calculations suggest a potential 40% higher price target than the current stock price, providing a significant margin of safety.