Intel’s incoming chief executive plans to revamp the embattled tech giant’s chipmaking operations and slash jobs to better compete with industry rivals, according to a report.Lip-Bu Tan, a former Intel board member who takes over Tuesday, will be focused on streamlining Intel’s manufacturing process to churn out more AI chips for clients like Nvidia, sources with knowledge of his thinking told Reuters.His plans also include staff cuts to the firm’s bloated middle-management layer, which he has argued slows ...

Group 1 - Intel has appointed Lip-Bu Tan as the new CEO, indicating a strategic shift in leadership [1] - The appointment comes amid significant updates affecting the semiconductor market, suggesting potential changes in company direction and strategy [1] - The stock prices referenced were the after-market prices as of March 12, 2025, highlighting the timing of the announcement [1]

Compensation Package - New Intel CEO Lip-Bu Tan will receive a total compensation of $1 million in salary and approximately $66 million in stock options and grants vesting over the coming years [1] - Tan's compensation includes an annual bonus worth $2 million, long-term equity grants valued at $14.4 million, and a performance grant of $17 million in Intel shares [2] - The package also consists of stock options worth $9.6 million and a new hire option grant worth $25 million [3] Performance Conditions - Tan's stock grants will vest over five years, but he will not earn any shares if Intel's stock price declines over the next three years [2] - He can earn additional stock if the company's share price outperforms the market [2] - In the event of a change of control at Intel, Tan could be eligible for accelerated vesting of his stock options [3] Company Perspective - Intel stated that Tan's compensation reflects his experience and credentials as a technology leader and is competitive in the market [4] - The majority of Tan's compensation is equity-based and tied to long-term shareholder value creation [4] - Tan has agreed to purchase $25 million in Intel shares to qualify for the grants and bonuses [4] Market Reaction - Following Tan's appointment, Intel shares have increased nearly 20% in 2025, with most gains occurring this week [1]

Company Performance - Intel closed at $24.05, reflecting a +1.48% change, which lagged behind the S&P 500's gain of 2.13% [1] - The stock has decreased by 1.78% over the past month, contributing to a 13.29% loss in the Computer and Technology sector and a 9.57% loss in the S&P 500 [1] Earnings Forecast - Intel is expected to report an EPS of $0, indicating a 100% decline from the same quarter last year [2] - Revenue is forecasted at $12.28 billion, representing a 3.51% decrease compared to the previous year [2] Full Year Projections - For the full year, earnings are projected at $0.48 per share and revenue at $53.36 billion, reflecting increases of +469.23% and +0.48% respectively from the prior year [3] - Recent analyst estimate revisions indicate changing business trends, with positive revisions suggesting optimism about Intel's profitability [3][4] Valuation Metrics - Intel's Forward P/E ratio stands at 49.5, significantly higher than the industry average of 28.12, indicating a premium valuation [6] - The PEG ratio for Intel is currently 2.92, compared to the industry average of 1.92, suggesting higher expected earnings growth relative to its price [6] Industry Context - The Semiconductor - General industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

This is just one of many exciting international equities you can buy right now! The current environment is ripe for outsized gains in this asset class.The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trad ...

Core Viewpoint - The semiconductor sector, particularly ASML, is facing a broader market sell-off, but ASML's long-term prospects remain strong due to its unique position in the industry and its role in AI advancements [2][4][15]. Group 1: Company Overview - ASML manufactures advanced extreme ultraviolet (EUV) lithography machines essential for chip manufacturing, which are critical for companies like Nvidia and Intel [3]. - The company operates in a monopolistic environment, significantly ahead of competitors, allowing it to maintain strong sales and pricing power [4]. - ASML's business model is supported by increasing global chip demand, positioning it well for future growth despite cyclical challenges [4][9]. Group 2: Financial Performance - ASML's guidance for Q1 fiscal 2025 net sales is projected between 7.5 billion euros and 8 billion euros, with a gross margin of 52% to 53%, compared to 5.3 billion euros and a 51% gross margin in Q1 fiscal 2024 [9]. - The company's current price-to-earnings (P/E) ratio is 33.4, with a forward P/E of 27.9, which are considered bargain levels compared to its 10-year median P/E of 35.1 [11]. - ASML's stock has decreased by 30% over the past year, making it an attractive option for long-term investors despite recent market volatility [13]. Group 3: Investment Considerations - ASML offers a dividend yield of 1.1%, which is appealing compared to the S&P 500's yield of 1.3%, providing an incentive for investors to hold the stock during market fluctuations [14]. - The company is well-positioned to support advancements in AI chip technology, making it a compelling buy-and-hold candidate for investors focused on long-term growth [15][16]. - Despite potential risks from trade tensions and cyclical slowdowns, ASML's strong backlog and market position suggest resilience in its growth trajectory [9][12].

Despite spending much of early 2025 on a stock market downtrend, Nvidia (NASDAQ: NVDA) continues to command investor confidence and optimism.The psychological momentum it boasts appears only logical, as the year-to-date (YTD) 11.44% drop to $118.94, despite its severity, remains dwarfed by the 900% rally between November 2022 and the end of 2024.NVDA stock YTD price chart. Source: FinboldHowever, the question of whether NVDA shares are a buy, sell, or hold in March 2025 is becoming increasingly pointed as t ...

Market Overview - The Nasdaq Composite index has entered correction territory, down more than 13% from its December 16 highs, driven by economic developments leading to risk aversion among investors [1][2] - Factors contributing to the correction include tariffs imposed by the Trump administration, a weaker-than-expected jobs report, and declining consumer confidence due to potential inflation [2] Investment Opportunities - Market corrections can present solid buying opportunities, as historical trends indicate that corrections are often followed by sharp recoveries [3] - The Nasdaq Composite experienced corrections in early 2020 and 2022, followed by significant gains, suggesting that savvy investors who bought during sell-offs have benefited [4] Company Analysis: Nvidia - Nvidia shares have increased over 3,000% since 2019, demonstrating the potential for significant returns despite market volatility [5] - Investors are encouraged to seek companies with long-term growth potential, with Nvidia being a prime example [6] Company Analysis: Advanced Micro Devices (AMD) - AMD has achieved respectable gains of 413% since 2019, but has pulled back nearly 24% during the recent Nasdaq correction, making its current valuation attractive at 21 times forward earnings [8] - AMD's revenue increased by 14% in 2024, with non-GAAP earnings rising 25% to $3.31 per share, driven by record data center revenue and a 52% increase in client processor revenue [9][10] Growth Catalysts for AMD - AMD's data center graphics card business is expected to generate "tens of billions of dollars" in annual revenue in the coming years, up from $5 billion in 2024, as it launches next-generation AI graphics cards [11] - The global AI chip market is projected to exceed $500 billion by 2033, providing AMD with significant growth potential in data center revenue [12] - AMD's share of the server CPU market reached 35.5% in Q4 2024, up 3.7 percentage points year-over-year, indicating its competitive position against Intel [13] Future Projections - If AMD captures 40% of the AI server CPU market by 2028, its annual revenue from this segment could exceed $10 billion [14] - AMD is also gaining market share in PC CPUs, with a notable increase in revenue share for server CPUs, which could lead to stronger growth in the client segment [15] - Analysts forecast a 42% increase in AMD's earnings this year, followed by a 35% jump next year to $6.33 per share, indicating robust growth potential [15] Valuation and Price Target - AMD's potentially faster earnings growth and cheaper valuation compared to Nvidia make it an attractive buy during the ongoing market correction [16] - If AMD's earnings reach $6.33 per share and it trades at 25 times forward earnings, its stock price could rise to $158, representing a 62% gain from current levels [16]

The semiconductor industry has been the center of attention for investors looking to get into the United States technology sector. However, after a couple of years of nothing but upside, it seems that all of the good news had been priced into the stratospheric rallies seen in names like NVIDIA Co. NASDAQ: NVDA, but that volatility might be about to reverse on a new announcement. Taiwan Semiconductor Manufacturing TodayTSMTaiwan Semiconductor Manufacturing$171.34 -5.83 (-3.29%) 52-Week Range$125.78▼$226.40D ...

Group 1: Company Overview - Taiwan Semiconductor Manufacturing Company (TSMC) has a dominant position in the semiconductor foundry market, holding approximately two-thirds of the global market share, which positions it favorably for continued reliance from AI chip designers [3] - TSMC has achieved a remarkable 200% stock gain over the past five years, indicating strong performance and growth potential [2][6] - The company is planning to invest an additional $100 billion in U.S. production, complementing the previously announced $65 billion for manufacturing operations in Arizona, which may help mitigate tariff risks [5][8] Group 2: Competitive Landscape - Rival Intel is facing significant challenges, with its foundry business incurring losses of $13.4 billion in 2024, nearly double the previous year's loss of $7 billion, highlighting TSMC's competitive advantage [4] - Despite potential concerns regarding TSMC's presence in Taiwan and associated tariff risks, its critical role in the semiconductor industry makes it difficult for U.S. tech companies to switch to alternative manufacturers [7] Group 3: Financial Metrics - TSMC's operating profit margins are expected to be around 47.5% in the first quarter of this year, showcasing its profitability [5] - The company's price-to-earnings (P/E) ratio is currently below 26, which is considered low compared to the Technology Select Sector SPDR Fund's average of 36, indicating an attractive valuation for investors [6] Group 4: Investment Outlook - TSMC is viewed as an underrated investment opportunity, particularly with the ongoing growth in AI, suggesting that it may still be a good time for investors to consider adding TSMC to their portfolios [8] - The stock has experienced a 14% decline since the beginning of the year, which may be perceived as an overreaction to tariff threats, reinforcing the long-term investment potential in TSMC [9]