Is Intel A Good Stock To Buy? A Detailed Overview For 2024

Is Intel a good stock to buy?

Intel has been the dominator in the PC market for years. They are the pioneers when it comes to building CPUs. However, thanks to the AI emerging (revolutionizing different sectors), competitors like Nvidia do stand firm as worthy competitors. Just one look at the share price fluctuation over the past three years confirms how Intel has been competing with the likes of AMD and Nvidia.

However, the current estimation from the analysts and experts makes the near future look better for Intel. Its revenue performance has significantly increased, with the stock price hitting 65% year to date. Also, Intel’s new processors can potentially improve shareholders’ gains.

So, should you invest in Intel? Give this article a read for detailed insight.

Is Intel A Good Stock To Buy? : Reasons To Buy Intel Stocks

If you are also wondering whether to buy and hold an Intel stock or sell your existing Intel stock, then here are a few reasons that might convince you to hold it in your portfolio –

Reason 1: Delivery Of Results Is Still Persistent

Although there was a contraction in revenue in the previous year, Intel has seen a stable and solid quarter. Revenue went down by 8%, but it surpassed the Marketbeat.com consensus by a basis point of 430. Also, the strength was leveraged to the endpoint of it. Segmentally, the results were mixed.

All three of the five operating segments were contracting, while two of them were expanding. The expansion was evident in Mobileye and Foundry. On the other hand, sales in the Client Computing group were only 3%, lending evidence of industry normalization.

Reason 2: Steady Growth, Intel Guides Higher

The guidance provided by Intel exceeds the expectations of the analysts. Also, the company has a Q4 revenue expectation in a range with its low-end expecting YOY and sequential growth. In addition, it will also expectedly top the consensus estimation by 170 basis points.

The earning guidance also shows strengths staying at $0.44 compared to the consensus estimation of $0.32 released previously. So, naturally, the analysts are up for raising their targets for the following year and for the next quarter. Also, the analysts are too cautious based on the data from the previous quarter.

Reason 3: Analysts Have Some Higher Targets

Intel is favored by the analysts despite a Sell rating reiterated by Rosenblatt after the Q3 release. Different and other analyst activities have a reiterated Buy that has a target above the consensus. It is an upgrade and also a price target boost while the stock remains stagnant at a consensus Hold.

In addition, the price target keeps increasing. No, the price target is not agreeably a catalyst at $34. However, the majority of the fresh targets remain above consensus and push the market into a reversal.

A sum up from the analysts’ discussion suggests that PC strength is, in fact, underpinning results. In addition, the PC market is likely to see some growth in the following year. According to Mizuho, the maximum potential growth of the PC market will be between a mid to single-digit growth.

Also, according to JPMorgan, the results are good, but the team at Intel is likely to have a tough journey ahead with a number of different product launches in the following few quarters.

Reason 4: Intel’s Chip Sales Is Improving!

The semiconductor industry has been supposedly at a weak standpoint. Intel probably seems to have reached the bottom as well. Their revenue grew on a YOY basis in each of the quarters of 2023. Also, there seem to be some expectations from the management at Intel for the revenue to be up again in the fourth quarter.

Here is what the Intel CEO has to say about it –

“We delivered a standout third quarter, underscored by across-the-board progress on our process and product roadmaps, agreements with new foundry customers, and momentum as we bring AI everywhere,”

Reasons 5: New Server Chips Show Potential

Over the last three years, the research and development sectors at Intel have gotten some boost. Investment in R&D can lead to more growth in the following year. So, if you are asking, “Is Intel a good stock buy?” at the end of 2023, then you are probably in for some luck.

Wall Street has been boosting Intel’s revenue estimates thanks to its competitive hold and dominance in the Xeon server chip portfolio. The stock can go higher in the following year thanks to a current growth projection pointing to a potential 13% revenue increase.

Is Intel A Good Stock To Buy? Reasons To Sell Intell Stocks

Now, with all those positive signs pushing investors to buy and hold Intel stocks, some indications suggest otherwise. Investors are more bullish on the prospect of the company. But it remains to be seen if it will derail the speed and momentum of AMD or not.

AMD’s Gen 4 EPYC processors remain relatively successful and have grown 50% (sequentially) in the 3rd quarter. In addition, its total share in the chip market has exceeded 25% – more than double of what was at the end of 2022. Also, there seems to be strong hype over their upcoming MI300 AI accelerators.

It is safe and fair to say that the intel stocks are not cheap. Also, many investors are of the opinion that Intel is back. However, if the management at Intel is wrong and if AMD takes a steady pace at gobbling more of the market share, the investors will supposedly see a disappointing return.

Disclaimer

Is Intel a good stock to buy? Well, as a pioneer in the CPU industry, Intel does bring some promise to its shareholders. However, despite the high competition from AMD and Nvidia, Intel has some positive points about why you would want to invest in its stocks.

However, we’d like you to know that this article is purely based on the current data forecast and the estimation of famous stock analysts. We neither promote nor are against investing in Intel. If you invest or sell your stocks, you are to do so at your own convenience. Hopefully, you have found some information out of this article. Thank you for reading.

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