Why I Bought More Intel Stock

Core Viewpoint - Intel is undergoing a significant transformation, investing heavily in manufacturing and aiming to establish a competitive foundry business, while facing challenges from rivals like AMD and a downturn in the PC market [1][2]. Group 1: Product Development and Performance - Intel has faced delays in its manufacturing processes, particularly with the 10nm process, which hindered its ability to compete with AMD [3]. - Recent launches of the Sierra Forest and Granite Rapids server CPUs have shown promise, with early reviews indicating that Granite Rapids has closed the performance gap with AMD [3][4]. - The company has outsourced production for its upcoming Lunar Lake and Arrow Lake chips to TSMC, which has resulted in improved battery life and efficiency [4]. Group 2: Manufacturing and Foundry Business - The Intel 18A manufacturing process is crucial for the company, with plans to produce many products in-house and attract significant customers like Microsoft and Amazon [5]. - The foundry segment is currently operating at a loss, but this is expected as Intel makes substantial investments ahead of revenue generation [6]. - Intel is restructuring its foundry business into a subsidiary to attract outside investment and potentially go public in the future [6]. Group 3: Market Position and Valuation - Intel's stock has dropped significantly, trading below book value, which reflects a pessimistic market outlook despite the company's leading position in PC and server CPUs [2]. - The investment in Intel is viewed as a long-term bet, with the expectation that the current low valuation will eventually yield positive results [7].