Looks like Intel is moving in right direction, but my semi play is SOXX. Don't know enough to pick winners and losers. Intel is the largest holding of SOXX, so I hope it keeps moving in the right direction.I think a discussion regarding INTC points to how investing even in an established business with consistent profits has a level of speculation to it.
The hope here is the new CEO, who is a tech guy and that is seen as a good start, gets them back on track after years of giving up market share.
So like IBM, the hope is it's a turnaround story, but a turnaround story of a company that is still very profitable, and pays a decent dividend.
Am I going to get into the weeds of what this CEO needs to do, whether we are talking in regards to improving their chips, or their profit margins? No. Even the best analysts will only be able to give vague predictions regarding those things. I'm going to allocate a certain % of my portfolio and cross my fingers. Best case they make a GE like move, and I'm up 70%(or whatever I'm at right now) worst case I collect a couple bucks in dividends and I sell in 3, 6 or 12 months.
I have been going heavier and heavier in that direction with my portfolio recently. More towards that value, cyclical play that has done very well in recent months. It won't last forever, I'm just hoping it lasts a fair amount longer.
Morningstar FMV is $65, so it is just about at that level. The big risk seems to be not keeping their production tech up to the standards of their main competitors - AMD and NVDA.