Intel Corporation Stock Intrinsic Value – Intel’s New Investment Plan Unlikely To Close Gap With Rivals In Short-Term

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Intel Corporation ($NASDAQ:INTC) is a multinational technology company specializing in the design, manufacture, and sale of computer hardware and software. Recently, Intel announced a new investment plan that aims to keep the company competitive in the rapidly changing technology industry.

However, it appears unlikely that this new investment plan will close the gap between Intel and its rivals in the short-term. This is part of Intel’s strategy of becoming more agile and innovative in order to stay ahead of their competitors. Unfortunately, these investments are unlikely to bear fruit in the near future and Intel may find itself lagging behind its rivals in the upcoming years. Intel’s efforts to stay ahead of the competition have not been successful thus far. Despite their significant investments, Intel has been unable to keep up with their rivals over the past few years. This has been particularly true in the mobile computing sector, where Intel has struggled to gain market share from other major players. To make matters worse, Intel’s main competitor, AMD, has been able to outpace Intel in terms of performance and innovation over the past few years. AMD’s Ryzen processors have been particularly effective in closing the gap between the two companies. Furthermore, AMD has been able to develop more advanced products at a faster rate than Intel. The company has already been unable to match its competitors over the past few years and this latest move is unlikely to change that.

Market Price

On Tuesday, INTEL CORPORATION stock opened at $44.5 and closed at $43.6, representing a decline of 2.5% from its previous closing price of 44.7. Although these investments are likely to bear fruit in the long run, it is unlikely to bridge the gap between INTEL and its competitors in the short-term. Moreover, the new investment plan doesn’t address any of the existing issues such as the lack of innovation in the company’s product line-up or the slower-than-expected progress in emerging technologies. The company will need to address its existing issues such as lack of innovation and progress in emerging technologies in order to gain a competitive edge over its rivals. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Intel Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Intel Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Intel Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Intel Corporation are shown below. More…

Analysis – Intel Corporation Stock Intrinsic Value

After analyzing INTEL CORPORATION‘s fundamentals, GoodWhale has determined that the fair value of its share is around $22.0. This figure was calculated using our proprietary Valuation Line. At present, INTEL CORPORATION’s stock is trading at $43.6, which implies it is being significantly overvalued by 98.5%. More…

Peers

With the ever-growing competition in the world of technology, it is no surprise that there is a constant battle between the top companies in the industry. One such battle is between Intel Corp and its competitors Micron Technology Inc, GLOBALFOUNDRIES Inc, and Advanced Micro Devices Inc. All three companies are constantly trying to one-up each other in order to stay ahead in the race to be the best.

– Micron Technology Inc ($NASDAQ:MU)

The company’s market cap as of 2022 is 58.16B. The company’s ROE is 12.3%. The company is a leading provider of semiconductor solutions. The company’s products include DRAM, NAND, NOR and other flash memory products. The company’s products are used in a variety of applications, including mobile devices, computers, servers, storage devices and consumer electronics.

– GLOBALFOUNDRIES Inc ($NASDAQ:GFS)

GLOBALFOUNDRIES Inc is a leading semiconductor foundry that provides advanced technology solutions to clients across the globe. The company has a market cap of 26.85B as of 2022 and a ROE of 5.09%. GLOBALFOUNDRIES Inc offers a wide range of foundry services, including logic, memory, mixed-signal/RF, and embedded processor technologies. The company has a strong client base that includes some of the world’s leading semiconductor companies.

– Advanced Micro Devices Inc ($NASDAQ:AMD)

Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. Its main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.

As of 2022, AMD has a market capitalization of $93.57 billion and a return on equity of 4.13%. The company’s products are used in a variety of electronic devices, including personal computers, game consoles, servers, and mobile devices.

Summary

Intel Corporation recently announced a new investment plan to help the company catch up with its competitors in the near term, however, analysts are sceptical that this plan will result in any significant changes. Intel’s current investment plan is focused on increasing production of its latest generation of PC chips, as well as investing in new technologies like driverless cars and artificial intelligence.

Additionally, Intel is investing in developing countries to help boost its presence in the region. Despite these attempts to close the gap between Intel and its competitors, analysts are not convinced that the investment plan will be successful in the short-term. Intel’s stock performance over the last year has been lagging behind competitors and analysts believe that the company should look towards more long-term strategies to close the gap.