Core Viewpoint - Intel has experienced a significant decline in stock price following disappointing earnings results and negative developments, with shares dropping over 26% and currently trading below $20, levels not seen in over a decade [1][3]. Financial Performance - For the quarter ending June 30, 2024, Intel reported revenue down nearly 1% year-over-year, missing forecasts by approximately $150 million [3]. - Non-GAAP earnings came in at 2 cents per share, missing expectations by 8 cents [3]. - Guidance for the current quarter was lowered, with expected revenue between $12.5 billion and $13.5 billion, compared to analyst expectations of $14.4 billion [3][4]. Strategic Developments - Intel has suspended its dividend and announced layoffs affecting 15,000 employees, indicating increased uncertainty regarding its turnaround efforts [4]. - The company is attempting to capitalize on the AI chips trend and expand its chip foundry operations, but recent challenges may hinder these plans [4][6]. Valuation Insights - Despite the stock's drop to sub-$20, it trades around its tangible book value, but other valuation metrics suggest it may still be overvalued [5]. - Analysts project earnings per share (EPS) of only 27 cents for the current year, resulting in a forward price-to-earnings (P/E) multiple of 72.4 [5]. - Expected earnings rebound in 2025 to $1.26 per share implies a valuation of around 15.3 times this forecast, which may not reflect the current uncertainties [5]. Market Sentiment - Investors considering buying Intel at current prices may be misjudging the situation, as further declines could occur due to ongoing pessimism about the company's prospects [7][8]. - The tangible book value may provide some support against further declines, but it is subject to change with potential net losses [8].

With the artificial intelligence (AI) story still heating up, buy semiconductor stocks on the cheap. For one, after a massive tech pullback, many are now dirt cheap, including Nvidia (NASDAQ:NVDA), which is just starting to regain lost momentum. Two, with the AI boom heating up, Precedence Research says the semiconductor global market could be worth about $1.13 trillion by 2033 from $544.8 billion in 2023.Three, many of the top semiconductor companies are posting incredible sales growth. Taiwan Semiconducto ...

The AI boom has made finding high-growth stocks at fair value challenging, especially in the tech and chip sectors. Despite Nvidia’s (NASDAQ:NVDA) recent drop from $134 to $112 per share, stocks related to the AI trend remain pricey, to say the least. That said, some growth opportunities are now fairly priced after sector pullbacks, offering investors a chance to buy growth at reasonable rates.Many investors may miss such growth stocks, especially now that recession fears are looming large again and the tec ...

Always pay close attention to new stock price targets from firms, like Needham. While the firm won’t always get it right, price upgrades are still worth paying attention to. Perhaps they’re seeing favorable industry trends that are impacting a covered stock. Maybe the financial health of a stock based on earnings or guidance is improving. Or, perhaps, they liked what they heard in a meeting with management. Whatever the case, it’s a good idea to look into the reasoning for a price upgrade.However, never use ...

In today’s unpredictable stock market, investors must discern which stocks to sell to protect their portfolios. The focus here is on three companies facing significant challenges that suggest they may be candidates for the stocks to sell list. Each company experiences fundamental weaknesses that could impact its future performance.For instance, a player in the semiconductor equipment industry relies heavily on a single market, which exposes one company to market volatility and restricts growth opportunities ...

A potential future trillion-dollar company, Qualcomm (NASDAQ:QCOM) has seen impressive interest this year. The company’s strong performance this year has been driven by its AI-powered Snapdragon processors, which work for PCs, gaming, smartphones, and automotive models. Despite the stock seeing a 20% drop over the past month and concerns regarding the U.S. economy, Qualcomm may rebound due to strong handset sales and an advantage in automotive.Known more as a semiconductor play, Qualcomm also supports diffe ...

Apple (NASDAQ:AAPL) is a formidable entity within the technology sector. The anticipation surrounding its iPhone 16 launch, especially with the integration of Apple Intelligence, underscores its strategic focus on innovation. Moreover, Foxconn’s hiring surge exemplifies the strategic preparations for the iPhone 16 launch. The addition of thousands of workers within a short time frame is vital. This increase reflects the anticipated high demand and production scale for the new iPhone model and its potential ...

Every investor is well aware of the volatility sweeping the markets over the past few weeks. The same investors are trying to understand whether a market meltdown or massive opportunity is ahead. While no one knows with 100% accuracy there are several stocks investors should watch to get a better grasp of the future market direction.These stocks represent certain narratives and overarching trends moving the markets. Certain classes and categories of stocks will perform better during this period of volatilit ...

Advanced Micro Devices (NASDAQ:AMD) has been living in the shadow of its larger rival, Nvidia (NASDAQ:NVDA), for quite some time now. In less than a year, AMD has gone from being seen as a peer to Nvidia to more of a “Nvidia-lite” in the eyes of many investors. The stock tends to move in tandem with Nvidia and the broader semiconductor sector, rising and falling with the tides of the notoriously cyclical chip industry.At this point, I view AMD as a “show-me” stock. The company has a lot to prove if it wants ...

For the most part, 2024 has been a year of relative success for financial stocks, as the sector has been able to provide strong returns to investors amid a U.S. economy that could be reaching a breakpoint for the average consumer. Recently, Bank of America (NYSE:BAC) CEO Brian Moynihan attributed this spending slowdown to a maintenance of lifestyles acquired during the pandemic-era stimulus checks. However, this take is not founded in reality, as this concept of increased consumer spending habits three year ...