Microprocessor manufacturer Intel (NASDAQ:INTC) is back in favor after a prolonged period in the Wall Street doghouse. Today is a great day to bet $1,000 on INTC stock as Intel continues to remind investors of its drive to bring top-tier tech components to the market.
2022 and early 2023 were tough times for Intel and its stakeholders. Advanced Micro Devices (NASDAQ:AMD) stole market share from Intel while inflation and interest rate hikes generally wreaked havoc on chip stocks.
However, it appears that Intel is finally having its turnaround moment. As Intel reasserts itself in a competitive microprocessor market, enterprising investors should consider taking a reasonably sized share position for the long term.
What’s Happening With INTC Stock?
INTC stock once traded at around $69, but competition from Advanced Micro Devices and other factors brought it down to $25 for a hot minute. A recovery seems to be in progress, though.
Not long ago, traders pushed the Intel share price above $30 and market sentiment suddenly favored the once despised chipmaker. What turned the tide? Perhaps it was the company’s recent webinar for Intel’s Data Center and Artificial Intelligence (DCAI) business unit.
The DCAI webinar showcased a range of Intel processors, with fancy names like Emerald Rapids and Sierra Forest. There’s no need to delve into the tech-geek details here. Just suffice it to say that Wall Street was duly impressed.
Soon after the DCAI webinar, Raymond James analyst Srini Pajjuri raised his price target on INTC stock from $33 to $35. Also, Deutsche Bank analyst Ross Seymore lifted his price target on Intel shares from $28 to $32.
Intel Is on Track With Data Center Processor Release
Clearly, some analysts are increasingly bullish on Intel in the wake of the DCAI webinar. Yet, that’s not the only development that Wall Street’s experts are talking about.
Just recently, Intel announced (per Reuters) that its data center semiconductor, Sierra Forest, will be delivered in the first half of 2024. This release timeframe, according to Bloomberg, is earlier than expected.
You might expect Wall Street to be unanimously optimistic about this development. However, interestingly enough, some analysts aren’t too impressed. For example, Oppenheimer analyst Rick Shafer remains “on the sidelines” about Intel while KeyBanc analyst John Vinh awaits “further proof points on [Intel’s] ability to close the performance gap and regain market share versus AMD.”
The skepticism is duly noted as Intel is still a “show-me” story. That said, I remain encouraged by Intel’s timely update on its upcoming data center processor.
It’s a Great Time to Wager $1,000 on INTC Stock
Intel has a long road ahead of it. The company has to demonstrate that it can compete successfully against fierce competitors like Advanced Micro Devices.
On the other hand, the DCAI webinar reminded investors that Intel hasn’t lost its drive to innovate. Ultimately, it’s possible but not guaranteed that INTC stock will revisit the $70 area at some point. Therefore, a moderately sized share position in Intel — say, $1,000 — is perfect right now for a confident buy-and-hold strategy.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
