New Trade for November 17th, 2023

Intel (INTC) Trade Alert: A Turnaround Story Unfolding

Intel Corporation (NASDAQ:INTC) has recently shifted gears, transforming from a market underperformer to a potential market leader. The company’s latest earnings report surpassed Wall Street’s expectations, marking a significant turnaround. Intel reported non-GAAP earnings of 41 cents per share in Q3 2023, an 11% increase year over year, easily beating the consensus estimate of 22 cents per share.

Government Funding and Strategic Investments:

  • Intel is in the running to receive substantial government funding for secure chip-making facilities, a move that could significantly bolster its position in the semiconductor industry.

  • The company has made strategic investments in Arm (NASDAQ:ARM), a U.K.-based microchip designer known for its high-demand AI chips.

  • Intel is also leading a financing round for Stability AI, a startup famed for its image-generating software, Stable Diffusion. These investments in cutting-edge technology sectors highlight Intel’s commitment to innovation and growth.

Insider Confidence:

  • Intel CEO Pat Gelsinger’s repeated purchase of INTC stock signals strong insider confidence. Gelsinger acquired 8,200 shares in May, 7,100 in August, and 6,775 shares between October 31 and November 1, demonstrating his belief in Intel’s potential.

Why Consider INTC Stock Now?

  • Intel’s recent performance indicates a significant recovery, marking the beginning stages of a potential major comeback.

  • The company’s focus on AI and strategic partnerships positions it well for future growth.

  • The possibility of receiving government funding for secure chip production could be a game-changer for Intel, enhancing its competitive edge.

  • Insider buying, particularly by the CEO, adds an extra layer of credibility to the company’s growth narrative.

Conclusion:

Intel’s impressive earnings beat, strategic investments, and potential government funding make it a compelling pick for investors. While the company faced challenges in late 2022 and early 2023, losing market share to competitors like AMD, its recent moves suggest a strong comeback. For investors looking for a high-conviction turnaround story in the semiconductor sector, INTC stock presents an attractive opportunity for 2023 and 2024.



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