Intel Q1 FY12/24 Earnings Analysis
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No New News
by Alex King
Summary:
- Intel financials continue to improve, not that you would notice from the stock price.
- The company remains a major beneficiary of Federal chip-sector subsidies.
- Our rating changes to Accumulate - we lay out our Accumulate and Stop price ranges below.
Sometimes Fundamentals Do Matter
To me, Intel is a simple stock to own. This storied anchor tenant of what was once known as The Silicon Valley hit problems a decade or so back as it began to stumble in its manufacturing prowess. The company failed to navigate the shift to 10nm feature size, then repeated the error at the 7nm node. Coupled with its lack of presence in GPU this has hurt the fundamentals and it has hurt the stock. The lows came in late 2022 and ran up very nicely from that point.
We've had a great run with Intel, that said. We called it as an 'Accumulate' opportunity at the 2022-23 lows and personally I made solid gains selling the name in January this year.
As the stock hit local highs and began to dump once more, I started to accumulate a new position - I added to this today.
The fundamentals are improving and look like they may soon turn an important corner; and the chart looks to be putting in a technical low around here. To my mind the upside opportunity is material from here, and the downside can be protected with a stop not too far away from here. I'll cover what I think are sensible stop-loss levels and price-target ideas below.
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