Intel (INTC) shares have pushed higher in recent sessions as investors await the company’s launch of new PC processors at the annual CES event set to officially kick off on Jan. 6. The said rally has pushed INTC past two of its major moving averages (20-day and 50-day), which is often interpreted in technical analysis as a bullish signal. More News from Barchart Versus its April low, Intel stock is up a whopping 120% at the time of writing. www.barchart.com Is It Worth Buying Intel Stock Here? INTC ...

Core Viewpoint - David Tepper, a successful contrarian investor, has made significant investments in distressed stocks, particularly in the tech sector, with a focus on Alibaba and Intel as key holdings in his hedge fund, Appaloosa Management [1][2]. Group 1: Alibaba - Alibaba represents 12.4% of Appaloosa's portfolio, with a market value of $801.5 million at the end of the second quarter [8]. - Tepper began accumulating Alibaba shares in Q2 2022, purchasing at an average price of $80.87, and the stock has since appreciated over 100%, closing at $167 [6][9]. - The company faced significant challenges, including regulatory crackdowns and a $2.8 billion fine, but has benefited from the AI boom and strong growth in its cloud computing unit [4][9]. - Despite its growth potential, Alibaba's overall growth remains slow, leading to a partial sell-off of shares by Appaloosa in Q2 2023 [10]. Group 2: Intel - Intel constitutes 2.8% of Appaloosa's portfolio, with a value of $179.2 million after purchasing 8 million shares at an average price of $21.25 [14]. - The company has struggled with market share loss to AMD and challenges in the AI sector, but recent management changes and government investments have positioned it for recovery [11][13]. - Intel's stock has nearly doubled in value to around $40, but it remains a high-risk investment due to ongoing growth struggles and potential volatility [15].

Core Insights - AMD is gaining market share in the PC CPU and standard server CPU segments, which are significant cash generators for the company [2] - AMD has developed new solutions for AI accelerators, aiming to compete with NVIDIA, although current share gains in this area are minimal [4][3] - The data center market is expanding, with AMD having the potential to capture a larger share as the overall market grows [5][6] AMD's Performance - AMD continues to gain share against Intel in traditional CPU markets, which is a positive indicator for its financial health [2] - The company is in the early stages of developing AI accelerator solutions, which could lead to future growth opportunities [3][4] Market Dynamics - The data center category is valued at over $4 billion per quarter for AMD, while NVIDIA's data center business exceeds $40 billion [4] - Both AMD and NVIDIA are expected to experience strong growth as enterprises increasingly invest in AI technologies [6]