3 Reasons to Buy Intel Stock Like There’s No Tomorrow in 2024

Artificial intelligence (AI) is by no means a new concept, as the technology has been under development for at least four decades. However, the launch of OpenAI’s ChatGPT in 2022 sparked renewed interest in the sector, sparking a surge in many tech stocks. As a result, Nasdaq Composite Index has increased by 33% over the last 12 months.

Intel (NASDAQ:INTC) The company was initially sidelined from the AI ​​rally, with investors more concerned about recent headwinds. However, it appears Wall Street is starting to wake up to the company’s growing role in this nascent market.

Since the beginning of last year, Intel has launched a series of new AI chips and restructured its business to focus on expanding its manufacturing capabilities. So, despite a 36% decline since the start of the year, the company’s shares are up about 6% since the end of May.

The company has made a number of recent changes that could pay off handsomely in the years ahead. Here are three reasons to buy Intel stock like there’s no tomorrow in 2024.

1. Play the long game with AI

Intel has faced many obstacles over the past decade. The company was once the biggest name in the chip market, with a leading market share in manufacturing and a lucrative partnership with Apple Intel has become the primary supplier of chips for the Mac lineup. However, the loss of these two components has led to a sharp decline in Intel’s stock and profits. Intel’s annual revenue and operating income have fallen 3% and 100%, respectively, since 2014.

The company has recently reorganized its operations to come back stronger in the long term. In April, Intel launched a new round of layoffs in its sales and marketing department. The move is part of the tech giant’s plan to cut spending by up to $10 billion by 2025.

The company is cutting the fat in some areas, so to speak, and throw everything at AI and its booming foundry business. Intel is investing billions in building chip factories across the United States, aiming to reclaim the top spot in manufacturing. The company hopes its in-house foundry model will save it “more than $8 billion to $10 billion by 2025” and help it “achieve non-GAAP gross margins of 60%.”

Getting into manufacturing requires a significant upfront investment, but Intel won’t be footing the bill alone. The company is a major beneficiary of President Biden’s CHIPS Act, an initiative aimed at expanding the county’s foundry capacity. As a result, Intel will receive an $8.5 billion grant from the U.S. government to support its industrial expansion.

It will take time for Intel to become a major player in the chip manufacturing market, but doing so could allow it to make significant gains in the years to come. Demand for chips is likely to only increase in the foreseeable future as the technology market grows. In the meantime, manufacturing would allow the company to take advantage of increased demand from AI chipmakers, such as Nvidia And AMDoutsource their foundry needs.

2. Constant improvement of its results

Intel still has a lot of work ahead of it before it gets back to…

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