This short-term change is due to a deliberate expenditure on expenses, in order to dramatically expand the business It's not that their business is in trouble and going to have some bad years, it's that they decided to invest that money in expansion and development. That is, in practice the money remains in the company This is the kind of CapEx that is ignored in calculating free cash flow Just because you invested a billion dollars in a factory does not mean that you did not make that billion or that you did not earn it Your company is now worth (at least) a billion more than it was before Just like what would happen if that billion went to free cash flow (if you did not spend it) Analysts look at the situation incorrectly, they treat these expenses as fines or salaries, as if it is money that leaves no value after spending it But it does leave value, and even increases the overall value of the company
Great video but the big thing you're missing is the increase in CapEx is to accelerate growth. I believe they are investing in fabrication plants. This is a big deal and could dramatically propel their growth.
batcrazy: thanks for sharing your view. However, I am not missing capex to accelerate growth. I was clear in the video that Intel may not be a great short to medium term strong performer for precisely the reason is you cited. In other words, future growth although likely is also likely to be 2 to 3 years out.regards, Chuck
People forget intel is the only company that designs makes and sells chips, they aren’t behind technologically and are increasing output which no other chip maker is doing ether intel is definitely a sleeping giant.
You’re missing it real big here. There is a chip shortage and it’s not just because of the pandemic. It started in 2018 -2019. Those other “chip makers” are not makers they are designers. TSMC and Samsung have foundry’s that currently make their chips. Intel is building foundry’s that will compete with TSMC and soon enough those chip designers will turn to intel to make their 5NM and 3NM chips while TSMC will be getting more outdated. This is where Intel will get to name their price and those chip designers like AMD, NVDA , Apple, Amazon and Qualcomm will need intel to make it for them. The future is bright for intel.
@Daniel I agree with you. The next two years will be rocky. I have my sights set on 3 - 5 years into the future. Meanwhile I will be adding shares on dips.
At first I thought that a 22+ minutes video would be bloated and drawn out. You proved me wrong! An absolutely impressive amount of information you have compressed into this video. God job, good sir - I appreciate it. Best regards from Denmark 🇩🇰
Awesome video, Chuck. I was thinking about buying Intel and its fundamentals look good. I checked Fast Graphs and saw the revenue slump. I checked out this video and your explanation totally made sense. It's a great company and they may get to where they say they can, but it's going to get really crazy and I can't see how they make their current obligations with out cutting the dividend or levering up. And that's not a good idea as rates will go up. I'll check back with them next year. I'm buying Aflac, Prudential, Alibaba, and some dividend ETFs. People seem to hate dividends for some reason. I see it like they are paying me back for the money I lent them. It may take a little longer, but I'd rather collect over time then hope for a ten bagger. The real trick is to get something with both. Dividends and the potential for a price increase.
Very good video It is important to note. This is a USA mfg.of chips. Competition designs chips but goes off shore to maker the product. This company is a US strategic asset. The analysis you provide on the financials is very helpful in determining investment for short and long term is very helpful. Many thanks for your insight. Very good very helpful.
Appreciate the review. Intel is on my list to add in my next round of purchases. It's a turnaround play and I'm in support of the factory they are building here in the States and hopefully it helps their bottom line in the long run and eliminates future chip shortages.
TY sir, a great video. I look at intel from a national security perspective. We cannot depend on TSMC to make all our chips when China is always threatening taking the island back. What then? I think intel will survive, do well and thrive and will be much bigger, but you will need 5 years. In meantime, you are right, probably put your money somewhere else and redeploy in intel in late 2023.
Great vid chuck. I’m hoping the government subsidies across US and EU will help reduce their capital exposure and therefore the earnings. AMD and Nvidia are both fabless if I am not wrong, so from a capital outlay perspective they aren’t really comparable companies.
Great video as always Chuck. NVDA and AMD - totally overvalued. Personally, I believe INTC will turn it around, but I prefer both AVGO and MU in the semiconductors, then I'm looking at INTC.
Hi Chuck. How about replacing Intel position with Micron? It is on of top positions for couple of smart portfolio managers (David Tepper, Guy Spier, Sequoia Fund, Seth Klarman, Li Lu) and trading at fair value right now.
summertime69: micron does appear to be a very attractively valued growth stock. However,I cannot use it as a replacement for Intel because it is held in portfolios with the objective of current income and growth of income. I believe that portfolios should be constructed based on the goals, objectives, needs and risk tolerances of the individual investor. Although micron might be a great high growth total return opportunity. With only a .58% current dividend yield it would not be suitable as a replacement for Intel. But it does look like an interesting choice for total return. Regards, Chuck
Chuck, great video, as always! Can you make a video on $LMT? It missed earnings today and laid out its future five year plan which is not great. The stock has a massive selloff today, down more than 12%. As you recommended $LMT multiple times and I hold this stock for quite a while, I would like to know your opinion about this stock based on updated earning estimates from the company. Thanks!
But you have to pay an ARM (UK) and give up a LEG? As for Intel, I'm long and buying more, but keep in mind it could in theory go the way of Ford (I'm long it in), GM (bankrupt/bailout) or even Kmart (bust, I lost a bundle at the turn of the century). Time will tell but I figure Intel has some of the best engineers and can figure it out, specially if PCs come back as they should.
Great overview of the fundamentals, as always! Keep in mind that they'll be looking at investing in the new chip making and maybe a huge investment in the new technologies, not only manufacturing facilities. I do own a few shares of Intel, and I might add a little bit more. I want to see Pat Gelsinger's first 3 years of him at the top to estimate where things will be headed. As of what I've read, is that he's heavy into R&D and likes to have the first mover's advantage, but we will see how he'll manage.
Gelsinger is an Engineer and not an Controller guy - and thats really key for the future here. Intel is his family and he had huge impact to Intels success in the 80s/90s (Intel Developer Forum etc.) Sure he has some homework to do but i think hes the right person for getting Intel back to a strong position - not that i dont like a big second choice with AMD!
Previous CEO (2016-2021) put shareholders value before R&D and therefore Intel lost their technology leadership. Pat Gelsinger is focusing on bringing Intel back to technology leadership, therefore needs a lot of R&D and Capex: shareholders will have to wait and suffer a bit. A new factory needs two years, and here Intel is competing with TSMC...
@@phvaessen I'd rather see a company that focuses on being an industry leader, than an investor pleaser. And in the semiconductors, you have to innovate, as technology development is king. It also might be the fact that there are quite a few big players, competing for a piece of the pie. It'll be an interesting few years ahead of them I believe, but I'll continue to DCA, and in situations like this even Lump sum will be even better.
I'm not sure what to do.. I'm long on this position and still little bit up ..maybe hold I believe they will pull this off but just how much could it go down before recovering
Don‘t care too much about my loss with my Intel stocks. I bought my AMD Stocks at the end of 2008 and every dollar I loose on Intel, AMD seems to add multiple times :) thank you for the very interesting topic and video, will get the fastgraphs subscription early 2022 :)
I think long term Intel is a good investment but I think it could go lower in the near future because of the current struggles. That being said it's one of the only semiconductor stocks that are decently valued.
I started a position around $46 and averaged up a tiny bit. I tend to hold for years when I buy a stock so I’m not worried about their profit margins dropping in the next couple of years. Hopefully in long run lower prices will make them more competitive even though it will hurt short term earnings. If business does turnaround could be pretty lucrative but there are obvious risks and a decent downside. Thanks Chuck can’t get enough of your videos!
I was being hesitant in making a move on INTC ... I love the company ... I bought it in 2016 ... but thank you so much for the "read- out-aloud-analysis". I chickened out. I SOLD IT ... feel kinda a sad. I like to buy and hold good companies ... forever if possible!! Ah well ...
Thanks for the thoughts, Chuck. Long INTC. Holding for now. Hoping the price tanks so I can add in a year or so when the Sellers clear out. Fingers crossed so they keep the divided.
Thank You Very Much for this tool.... Saw EPS tests begin to fall last year... Principal risk vs low P/E (Shrinking E) did not make it wise to hold. Sure appreciate how FAST Graphs helped to keep us out of trouble...
@@joeg9829 you watched the video? Earnings will go down at least -30% and free cash flow by more than -100% (that is intel's own guideline - it can go south from here)
The real question is/was: Where is the growth (considering their huge Capex)? This is also the case when you look at Samsung Electronics (for example). On the other hand players like TMSC invest similar amounts per year (talking about CAPEX) and seem to produce double digit growth. Something is off here. Given the fact that the semi-market grew by about 6.5% (historical growth over last ~ 20y) and further consolidation (esp. foundry business) is to be expected I cannot really understand the valuation differences ATM. Look at TSMCs, Samsungs, Intels multiples and also at the multiples of other companies in the semi-value chain. I think companies like Samsung or Intel should trade at least at 12-15x EBITDA. Markets are irrational sometimes ...
The fact that you dug into Intel and didn't discuss the change at the top with the CEO nor you didn't analyse various aspects of their business makes it hard to take this evaluation very seriously. Businesses are more than analysts evaluations and spreadsheets. The various concerns are valid, but it was a completely glass half empty look at this company.
Yes Chuck mostly only looks at the Financials, not other business risks. He is quite transparent about this. There are just many commenters here who take his analysis as all they need to know,. I agree with you about Intel. On the technology front they are so far behind their competitors. I sold out months ago and I think I dodged a bullet.
Intels 26% debt is misleading. In the past 5 years they’ve borrowed billions and used it to buy back shares and raise dividend. That’s financial engineering, not based on returns.
Peter: I covered this in the video. Intel has been buying back shares which is considered shareholder friendly and I like the fact that they have done it when their shares have been at low valuations. Regarding the revenues both total revenues in miillions and revenues per share have grown. As a shareholder when a company buybacks shares my relative percentage ownership of the business increases and I get a bigger call on the companies future growth.9 billion in debt for a company with a 221 billion market That generate strong operating cash flow Does not seem misleading to me. Thanks for your input, Chuck
They have $64 billion in retained earnings and $4 billion in cash. Debt is $36 billion, most due over 5 years out. This company is in a great financial position, with over $17 billion in free cash so far this year, and has taken advantage of cheap interest rates.
have you heard about the leverage effect? as long as CoD < ROI in theory it makes sense to increase leverage. using the free'd up cash to buy back stock (at low prices below intrinsic value) is in fact one of the smartest thing you could do. also you should consider: Intel grew over the past decade. they produce very strong fcf. they spent significant amounts (capex) which makes me believe they have a plan for the future (why would they invest if not for future returns). Intel is in a strong financial position. It made sense to buy back stock while cheap.
If you plan getting out of intel, then your best choice right now is Taiwan Semi $TSMC, they're trading at high valuation right now but they have huge growth ahead + 1.6% dividend This is the company that provides the 5 nonometter chips for AMD and NVIDIA, Intel will be their next customer They're building new factories in Japan and USA to satisfy the high demand
I sold 5 years ago INTC and bought AMD only because of the outlook of the processor architecture - I just won a lot of money- in these days I won’t invest in INTC nor in AMD- the future is by ARM based processors- less energy consumption - better efficiency . Intel is a huge ship- takes along time to change the direction- even they can’t produce in small nm sizes. Well long in ARM processors as Apple ( too expensive) so far. CISC will die and RISC architecture will win-
Lol, this video didn't age well... NVDA jumped 20% in the days since this was posted. Maybe it'll turn around the other way in a few years, but it was a bad call in the two weeks or so after posting...
IBM people still waiting for their long term gain. I believe Intel has the wrong management. If they are doing everything right, they will be able to catch the upswing in 4-5 years... in the meantime they will be losing and the competition is positioning itself wisely and harvesting in the meantime. This could leave Intel behind even in the longrun.
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
This short-term change is due to a deliberate expenditure on expenses, in order to dramatically expand the business
It's not that their business is in trouble and going to have some bad years, it's that they decided to invest that money in expansion and development.
That is, in practice the money remains in the company
This is the kind of CapEx that is ignored in calculating free cash flow
Just because you invested a billion dollars in a factory does not mean that you did not make that billion or that you did not earn it
Your company is now worth (at least) a billion more than it was before
Just like what would happen if that billion went to free cash flow (if you did not spend it)
Analysts look at the situation incorrectly, they treat these expenses as fines or salaries, as if it is money that leaves no value after spending it
But it does leave value, and even increases the overall value of the company
It's been 10 months since this video. An update on INTC would be welcome.
Agreed
What is there to update, Pat G fooled everyone with lies and the company is dead in the water with no outlook of execution improvement in sight.
This was great as usual Chuck! Thanks!
Great video but the big thing you're missing is the increase in CapEx is to accelerate growth. I believe they are investing in fabrication plants. This is a big deal and could dramatically propel their growth.
batcrazy: thanks for sharing your view. However, I am not missing capex to accelerate growth. I was clear in the video that Intel may not be a great short to medium term strong performer for precisely the reason is you cited. In other words, future growth although likely is also likely to be 2 to 3 years out.regards, Chuck
@@FASTgraphs thanks Chuck great insight
Excellent video.
Thx for the Video! Its time for an update!
People forget intel is the only company that designs makes and sells chips, they aren’t behind technologically and are increasing output which no other chip maker is doing ether intel is definitely a sleeping giant.
I own INTC 👌
You’re missing it real big here. There is a chip shortage and it’s not just because of the pandemic. It started in 2018 -2019. Those other “chip makers” are not makers they are designers. TSMC and Samsung have foundry’s that currently make their chips. Intel is building foundry’s that will compete with TSMC and soon enough those chip designers will turn to intel to make their 5NM and 3NM chips while TSMC will be getting more outdated. This is where Intel will get to name their price and those chip designers like AMD, NVDA , Apple, Amazon and Qualcomm will need intel to make it for them. The future is bright for intel.
@Daniel I agree with you. The next two years will be rocky. I have my sights set on 3 - 5 years into the future. Meanwhile I will be adding shares on dips.
I bought intel at 45 a share. I love this company.
In Pat we trust!
Intel insiders (including the CEO) have recently been buying Intel shares. Surely, that’s a good sign.
At first I thought that a 22+ minutes video would be bloated and drawn out. You proved me wrong! An absolutely impressive amount of information you have compressed into this video. God job, good sir - I appreciate it. Best regards from Denmark 🇩🇰
Awesome video, Chuck. I was thinking about buying Intel and its fundamentals look good. I checked Fast Graphs and saw the revenue slump. I checked out this video and your explanation totally made sense. It's a great company and they may get to where they say they can, but it's going to get really crazy and I can't see how they make their current obligations with out cutting the dividend or levering up. And that's not a good idea as rates will go up. I'll check back with them next year. I'm buying Aflac, Prudential, Alibaba, and some dividend ETFs. People seem to hate dividends for some reason. I see it like they are paying me back for the money I lent them. It may take a little longer, but I'd rather collect over time then hope for a ten bagger. The real trick is to get something with both. Dividends and the potential for a price increase.
you didn't lend intel any money you just own part of the biz.
People forget intel owns mobile eye.
That alone will be so massive for them!
So yes the short term pain is worth those gains that will come.
Isn't that only like 1% of their revenue though?
@@TheFishingNomad yes mobile eye is almost nothing when you look at the full company’s earnings
First!🤗 I picked up a bunch more when it was down last week. I believe in the long term prospects of Intel.
Very good video
It is important to note. This is a USA mfg.of chips. Competition designs chips but goes off shore to maker the product. This company is a US strategic asset. The analysis you provide on the financials is very helpful in determining investment for short and long term is very helpful. Many thanks for your insight. Very good very helpful.
can't wait for this thing to go down seems like a great place to put 5k-10k for a few years then ride the wave up
Appreciate the review. Intel is on my list to add in my next round of purchases. It's a turnaround play and I'm in support of the factory they are building here in the States and hopefully it helps their bottom line in the long run and eliminates future chip shortages.
thank you sir for your review!
Thank you sir.
Thank you for this intel on Intel!
Clever. I see what you did there.
@@meesacreef very INTELligent
TY sir, a great video.
I look at intel from a national security perspective.
We cannot depend on TSMC to make all our chips when China is always threatening taking the island back. What then?
I think intel will survive, do well and thrive and will be much bigger, but you will need 5 years.
In meantime, you are right, probably put your money somewhere else and redeploy in intel in late 2023.
Biden passed the chips act in November. TSMC is coming to the US, and Apple has agreed that TSMC will be its chips maker for a foreseeable future.
Isn't that what everyone is going to do? So won't that make the stock cost more when everyone decides to love intc again?
Great vid chuck. I’m hoping the government subsidies across US and EU will help reduce their capital exposure and therefore the earnings. AMD and Nvidia are both fabless if I am not wrong, so from a capital outlay perspective they aren’t really comparable companies.
I was waiting for this video ever since the Intel earnings. Thanks for the update Chuck!
Please do an Update to Lockheed :)
Thank you. What about loked Martin after yesterdays fall?
Luv the messenger.
Haven’t watched the video yet but I bet it’s another video in which Chuck enlightens us all.
Great video as always Chuck. NVDA and AMD - totally overvalued. Personally, I believe INTC will turn it around, but I prefer both AVGO and MU in the semiconductors, then I'm looking at INTC.
Nvidia is not undervalued if you look at the owners earnings - have a look at my comments above.
Thank you for sharing your knowledge.
Hi Chuck. How about replacing Intel position with Micron? It is on of top positions for couple of smart portfolio managers (David Tepper, Guy Spier, Sequoia Fund, Seth Klarman, Li Lu) and trading at fair value right now.
summertime69: micron does appear to be a very attractively valued growth stock. However,I cannot use it as a replacement for Intel because it is held in portfolios with the objective of current income and growth of income. I believe that portfolios should be constructed based on the goals, objectives, needs and risk tolerances of the individual investor. Although micron might be a great high growth total return opportunity. With only a .58% current dividend yield it would not be suitable as a replacement for Intel. But it does look like an interesting choice for total return. Regards, Chuck
Love your videos
Great video! Can you do a comparison of chip suppliers Applied Materials, Lam Research and KLA Corp?
Chuck, great video, as always! Can you make a video on $LMT? It missed earnings today and laid out its future five year plan which is not great. The stock has a massive selloff today, down more than 12%. As you recommended $LMT multiple times and I hold this stock for quite a while, I would like to know your opinion about this stock based on updated earning estimates from the company.
Thanks!
Looking forward to it. I have a small position @$353.
LMT will be great to examine after today! I hope Chuck is choosing to do that.
That was my first thought as well when I watched this video, possible Segway into an LMT video
Hello from Germany, i'm also very interested in Chuck's thoughts too $LMT
+1 for LMT
QCOM?
Nice video as usual! Would be interested to hear your opinion on PETS after the ER drop.
Nice review! Ever look at PBR in the oil majors space, looks like it's valued extremely well with a close to 10% dividend.
The question is if ARM (or the ARM architecture) is now the real new competitor to INTEL ?
But you have to pay an ARM (UK) and give up a LEG? As for Intel, I'm long and buying more, but keep in mind it could in theory go the way of Ford (I'm long it in), GM (bankrupt/bailout) or even Kmart (bust, I lost a bundle at the turn of the century). Time will tell but I figure Intel has some of the best engineers and can figure it out, specially if PCs come back as they should.
Would you move money from Intel to IBM
Chuck whats your take on BLDR ?
i personally like Micron (MU) in the semi conductor space Chuck, Im not sure if you have looked into it.
There is also a bill going through to subsidize semiconductor manufacturing in the US. That could help cushion the large Capex spending by intel.
@@sherwoodhikes9709Hikes Intel's Capex already priced in the government subsidies
Intel is unaffected by the sell off and have great dividends. I think this stock just waiting for some good news to get the gears in motion
Inflation hits inputs and margin too.
there will be a spin of with mobileye. 50 billion i think, but some % will be kept by intel....
Thank you very much for this excellent video. I own INTC and am deliberating what to do so this insight is very welcome. Thanks again :)
Intel should give us a much better entry point in the future
Great overview of the fundamentals, as always! Keep in mind that they'll be looking at investing in the new chip making and maybe a huge investment in the new technologies, not only manufacturing facilities. I do own a few shares of Intel, and I might add a little bit more. I want to see Pat Gelsinger's first 3 years of him at the top to estimate where things will be headed. As of what I've read, is that he's heavy into R&D and likes to have the first mover's advantage, but we will see how he'll manage.
Gelsinger is an Engineer and not an Controller guy - and thats really key for the future here.
Intel is his family and he had huge impact to Intels success in the 80s/90s (Intel Developer Forum etc.)
Sure he has some homework to do but i think hes the right person for getting Intel back to a strong position - not that i dont like a big second choice with AMD!
Previous CEO (2016-2021) put shareholders value before R&D and therefore Intel lost their technology leadership. Pat Gelsinger is focusing on bringing Intel back to technology leadership, therefore needs a lot of R&D and Capex: shareholders will have to wait and suffer a bit. A new factory needs two years, and here Intel is competing with TSMC...
@@phvaessen I'd rather see a company that focuses on being an industry leader, than an investor pleaser. And in the semiconductors, you have to innovate, as technology development is king. It also might be the fact that there are quite a few big players, competing for a piece of the pie. It'll be an interesting few years ahead of them I believe, but I'll continue to DCA, and in situations like this even Lump sum will be even better.
@@stoyankostov9849 Yes, and the clear leader is NVIDIA
I'm not sure what to do.. I'm long on this position and still little bit up ..maybe hold I believe they will pull this off but just how much could it go down before recovering
Thank you, sir! Just like request if you could do an eval on LMT, currently on selling mode after earning today. 🙏
Thanks for the LMT video, that caught my attention and now I'm going back to watch your other videos. I just can't trust Intel!
How bout taiwan semiconductor
Don‘t care too much about my loss with my Intel stocks. I bought my AMD Stocks at the end of 2008 and every dollar I loose on Intel, AMD seems to add multiple times :) thank you for the very interesting topic and video, will get the fastgraphs subscription early 2022 :)
Chuck tell us what u will buy after you go out of Intel.
Maybe there's a reason but curious as to why we didnt look at AVGO for intel competitor as well.
Great presentation, Chuck. I considered buying INTC in January 2020, but I bought AVGO at $302 instead. Glad I did.
I think long term Intel is a good investment but I think it could go lower in the near future because of the current struggles. That being said it's one of the only semiconductor stocks that are decently valued.
Intel is a Hard stock to invest.But i would consider a buy,but i would like 35-40$.
I started a position around $46 and averaged up a tiny bit. I tend to hold for years when I buy a stock so I’m not worried about their profit margins dropping in the next couple of years. Hopefully in long run lower prices will make them more competitive even though it will hurt short term earnings. If business does turnaround could be pretty lucrative but there are obvious risks and a decent downside. Thanks Chuck can’t get enough of your videos!
I was being hesitant in making a move on INTC ... I love the company ... I bought it in 2016 ... but thank you so much for the "read- out-aloud-analysis". I chickened out. I SOLD IT ... feel kinda a sad. I like to buy and hold good companies ... forever if possible!! Ah well ...
great you sold it - buy it back in two years.
Thanks for the thoughts, Chuck. Long INTC.
Holding for now. Hoping the price tanks so I can add in a year or so when the Sellers clear out. Fingers crossed so they keep the divided.
You can sell your shares. I’ll be glad to buy them from you at a cheaper price.
I bought INTC when this video came out at 49. I just sold it at 56 after ~ 21/2 months.
Oops... $INTC is like your analysis.
Intel will pull through. Pat is one tenacious CEO.
Thank You Very Much for this tool.... Saw EPS tests begin to fall last year... Principal risk vs low P/E (Shrinking E) did not make it wise to hold. Sure appreciate how FAST Graphs helped to keep us out of trouble...
Ti and sky works are the two best overall semi conductor stocks
AMD has no serious quantum computing effort
lntel is here to stay. I would love to see it under $40.
but you will see it under 20$
@@samuelwestknee7134 lmao a 3-5 p/e?
@@joeg9829 you watched the video? Earnings will go down at least -30% and free cash flow by more than -100% (that is intel's own guideline - it can go south from here)
@@samuelwestknee7134 Yes, please!
Time to back the truck up soon
I’m tryin to trade nvdia to buy intel for income cheap for income. 40 would nice
my take is they will adapt capex lower, to still grow and please investors....and one of their goals is increasing dividend yield.
The real question is/was: Where is the growth (considering their huge Capex)? This is also the case when you look at Samsung Electronics (for example). On the other hand players like TMSC invest similar amounts per year (talking about CAPEX) and seem to produce double digit growth. Something is off here.
Given the fact that the semi-market grew by about 6.5% (historical growth over last ~ 20y) and further consolidation (esp. foundry business) is to be expected I cannot really understand the valuation differences ATM.
Look at TSMCs, Samsungs, Intels multiples and also at the multiples of other companies in the semi-value chain. I think companies like Samsung or Intel should trade at least at 12-15x EBITDA. Markets are irrational sometimes ...
SWKS is semi stock to consider
TSMC can produce 3 Nanometer chip a year ago. Not sure how Intel can catch up quickly.
The fact that you dug into Intel and didn't discuss the change at the top with the CEO nor you didn't analyse various aspects of their business makes it hard to take this evaluation very seriously. Businesses are more than analysts evaluations and spreadsheets. The various concerns are valid, but it was a completely glass half empty look at this company.
He's showcasing his software and always recommends a deeper dive of any stock he covers.
Yes Chuck mostly only looks at the Financials, not other business risks. He is quite transparent about this. There are just many commenters here who take his analysis as all they need to know,.
I agree with you about Intel. On the technology front they are so far behind their competitors. I sold out months ago and I think I dodged a bullet.
long Intel!
When China invades Taiwan and takes over TSMC, then what?
Intels 26% debt is misleading. In the past 5 years they’ve borrowed billions and used it to buy back shares and raise dividend. That’s financial engineering, not based on returns.
Peter: I covered this in the video. Intel has been buying back shares which is considered shareholder friendly and I like the fact that they have done it when their shares have been at low valuations. Regarding the revenues both total revenues in miillions and revenues per share have grown. As a shareholder when a company buybacks shares my relative percentage ownership of the business increases and I get a bigger call on the companies future growth.9 billion in debt for a company with a 221 billion market That generate strong operating cash flow Does not seem misleading to me. Thanks for your input, Chuck
They have $64 billion in retained earnings and $4 billion in cash. Debt is $36 billion, most due over 5 years out. This company is in a great financial position, with over $17 billion in free cash so far this year, and has taken advantage of cheap interest rates.
have you heard about the leverage effect? as long as CoD < ROI in theory it makes sense to increase leverage. using the free'd up cash to buy back stock (at low prices below intrinsic value) is in fact one of the smartest thing you could do.
also you should consider: Intel grew over the past decade. they produce very strong fcf. they spent significant amounts (capex) which makes me believe they have a plan for the future (why would they invest if not for future returns).
Intel is in a strong financial position. It made sense to buy back stock while cheap.
Intel is a.boring dividend company now did not see any potential in the future
If you plan getting out of intel, then your best choice right now is Taiwan Semi $TSMC, they're trading at high valuation right now but they have huge growth ahead + 1.6% dividend
This is the company that provides the 5 nonometter chips for AMD and NVIDIA, Intel will be their next customer
They're building new factories in Japan and USA to satisfy the high demand
You need to get a better mic. I will subscribe to your channel and refer any others but please get a better mic it's hard to understand you.
I sold 5 years ago INTC and bought AMD only because of the outlook of the processor architecture - I just won a lot of money- in these days I won’t invest in INTC nor in AMD- the future is by ARM based processors- less energy consumption - better efficiency . Intel is a huge ship- takes along time to change the direction- even they can’t produce in small nm sizes. Well long in ARM processors as Apple ( too expensive) so far. CISC will die and RISC architecture will win-
Thanks for sharing. You are not believe that Intel will produce also arm in the future with location in Europe and the US?
big value trap, this one will hurt.
Lol, this video didn't age well... NVDA jumped 20% in the days since this was posted. Maybe it'll turn around the other way in a few years, but it was a bad call in the two weeks or so after posting...
What about now?
Thank you Hope you will do ZOETIS if you have the Time
IBM people still waiting for their long term gain. I believe Intel has the wrong management. If they are doing everything right, they will be able to catch the upswing in 4-5 years... in the meantime they will be losing and the competition is positioning itself wisely and harvesting in the meantime. This could leave Intel behind even in the longrun.
Invest in crypto for now... CRO token will quadruple