Intel stock (NASDAQ:INTC), once a darling among microprocessor makers, has lost significant market share in recent years to Advanced Micro Devices (AMD) and Nvidia (NVDA).
In 2022, Intel stock (NASDAQ:INTC) lost more than half its value, making it seem vastly oversold compared to its competitors. However, purchasing a stock only because it appears to be inexpensive is a sure method to lose millions rather than earn them.
Unfortunately, a pleasant retirement isn’t as easy as stockpiling and turning off the TV for a few decades. Whether a long-term holding in Intel stock may transform seemingly dead money into a multi-bagger is worth considering.
Market Analysis of Intel Stock
It seemed inconceivable a year ago to reduce Intel’s market capitalization to $110 billion. Nonetheless, here we are, and Intel’s trailing-12-month price-to-earnings ratio of 5.76 should pique the interest of any die-hard contrarian.
After all, Intel’s $110 billion market valuation is excessively low for a business that plans to generate $65 billion to $68 billion in sales in just one year – and a challenging chip-market year. Meanwhile, Intel’s Mobileye division recorded record sales in the second quarter.
So, what’s the deal with financial traders being so negative lately? They must be unhappy with the Federal Reserve’s interest rate rises or Intel’s loss of domestic chip leadership. They presumably didn’t like Intel’s 22% year-over-year sales decrease in the second quarter of 2022 or the company’s expressed projection that the overall addressable market for PCs would fall 10% this year.
Intel Stock Getting Back on the Offensive
Perhaps intrepid investors can view the glass as half full. Could Intel’s pessimistic PC market prediction and revenue shortfall pave the stage for a current-quarter Street beat?
Intel unveiled the 13th Gen Intel Core i9-13900K, branded as the “world’s fastest desktop CPU,” in what may be seen as a single-handed effort to revitalize the PC chip business. This allows gamers, broadcasters, and others to experience “blazing clock rates” of up to 5.8 gigahertz. This is a direct shot at the Advanced Micro Devices Ryzen 9 7950X CPU, which has a clock speed of 5.7 megahertz.
Learning to appreciate Intel once again
So, would Intel stock make (NASDAQ:INTC) future retirees millionaires? There are no certainties, but low expectations for the PC industry – and the firm – might catapult Intel back into the good graces of investors.
At the absolute least, a substantially priced, established behemoth with high-demand items, ambitious leadership, and budget-conscious consumer appeal should be evaluated. Furthermore, you may collect those hefty dividend payouts while waiting for the market to recall why it liked Intel stock (NASDAQ:INTC) in the first place: It’s all about the brilliant tech goods, which are always driven by unrelenting innovation.
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