As iconic a company as Intel (NASDAQ: INTC) is, the bear market and recent severe downturn in consumer spending on electronics (like PCs and laptops) have done a number on "chipzilla." Shares of the company fell over 40% since the start of 2022. Revenue is in decline, which has dropped Intel to third place in largest chip companies by sales (the top spot is now held by Samsung, and Taiwan Semiconductor Manufacturing (NYSE: TSM) is in a close second place).
There's hope Intel can make a comeback, especially as it retools its data center offerings and chips for consumer electronics. But it's going to be an expensive and multiyear endeavor for Intel, which introduces risk for shareholders. If you want to bet on an Intel rebound in 2023 and beyond (as well as the advance of the chip industry overall), there could be a better stock to bet on: Synopsys (NASDAQ: SNPS) . Here's why.
Though it has fallen on hard times, Intel is still a huge player in the chip industry. Revenue is on track to be at least $63 billion for 2022, and the company shells out tens of billions of dollars on equipment and services. That's where Synopsys comes in.
For further details see:
Bullish on Intel in 2023? Buy This Top Chip Stock Instead