I added to my position in Intel Corporation (INTC) position today at $59.265. Intel is not in my 15 largest holdings.
I first initiated a position in Intel back in 2013 at $21.1139. The pullback during the COVID crisis has made the stock a lot cheaper than it has been in a while. I’ve been considering getting some, but felt other companies were a better opportunity. Now that I’ve acquired a good amount of the top picks I feel comfortable with getting some of Intel even though it has recovered a bit itself.
Pros and Cons of Intel
Intel is one of the largest chip makers and makes most of the chips for PCs and servers including most of the computers I’ve every purchased. Even though PCs have been on the decline, the business community will most likely always depend on computers with strong processors and the growing work-at-home movement should provide more demand for their technology. They invest heavily in R&D, which helps keep them and the few other chip makers holding the market to themselves.
Most data centers rely in Intel technology. The growing usage of cloud services should continue to create demand for their technology. However, they will need to continue to invest heavily to stay ahead of competitors like AMD and Nvidia.
Intel is also investing a lot in Artificial Intelligence.
Valuation of Intel
- Trailing PE: 11.49
- Return on Equity: 30.25 (5yr high)
- Earnings yield: 8.56% (5yr high)
- Dividend yield: 2.20%
I may add more if the price stays around this level depending on other opportunities.
See more of my Intel comments/ analysis here.