- My optimism towards Intel remains strong as the company continues to successfully adapt to competitive dynamics, technological advancements, and economic fluctuations.
- I am particularly excited by Intel’s approach toward enterprise artificial intelligence, which, alongside the prospects of cyclical and product-cycle recoveries, is likely to propel the company’s growth in 2024.
- The strategic benefits stemming from the federal support via the CHIPS Act, coupled with Intel’s determined efforts to expand its foundry operations, highlight Intel’s long-dated moat in chipmaking.
- I update my valuation framework for Intel stock, and I now calculate a fair implied target price of $53/ share.
Intel (NASDAQ:INTC) shares have returned about 23% since I have upgraded the stock to “Buy”, compared to a gain of about 16% for the S&P 500 (SP500). And as INTC shares are trading very close to my previously established target price of $45.5/ share, I feel it is time for me to revisit my thesis: Overall, I remain bullish on Intel, as I see the company gaining momentum in navigating shifts in competition, technological shifts, and macroeconomic uncertainties. Specifically, I am encouraged by Intel’s strategy to strengthen the company’s focus on enterprise AI, while cyclical and product-cycle recovery prospects support commercial momentum in 2024. In addition, I like the strategic implications of federal support through the CHIPS Act and Intel’s ambitious expansion of its foundry business. In fact, the significant federal backing Intel has received underscores the company’s critical role in the U.S. technology infrastructure, presenting both opportunities and expectations for domestic semiconductor revitalization. Overall, I think Intel is effectively building the commercial foundation for explosive share price upside.
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