Intel: Don't Bet On It Catching Up To TSMC (Archive)
Intel’s rich valuation and structural headwinds make its recent outperformance vulnerable.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- I believe the longer term bull case on Intel's outperformance requires Intel to close its technological gap with TSMC.
- But TSMC's CEO has very unambiguously stated an informed opinion that they will remain a step ahead of Intel and I find this narrative more credible.
- Intel is facing inventory-correction and demand related headwinds in at least 36% of its business heading into FY24.
- Given the lackluster outlook, the stock seems expensive with little margin of safety for value buys.
- Technical analysis also suggests negative alpha ahead for Intel vs the S&P500.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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