February 14 was indeed a great day for Intel (NASDAQ:INTC) as INTC stock surged 2.5%. The company also laid out some plans to open a chip facility in Ireland with $2 billion in funding for the project. This is central to my INTC stock outlook.
The company’s IDM 2.0 transformation progress is evident in the company’s impressive Q4 revenue number, with Intel’s top-line coming in at $15.4 billion revenue. This surge represented 9% sequential and 10% year-over-year growth. Thus, the company’s shift towards integrated manufacturing and expansion in semiconductor processes and foundry business signal Intel’s strategic evolution.
With emphasis on process leadership, capacity, and product execution, sustained growth is anticipated. Here’s more on why I think Intel and INTC stock are currently overlooked in this market.
New Facility in Ireland
Intel’s existing presence in Ireland hints at plans for a new fabrication site, aligning with global expansion strategies. Operating in Ireland offers tax advantages. Intel distinguishes itself by in-house chip fabrication, aiming to meet growing demand and geopolitical trends.
According to Bloomberg, the company aims to raise $2 billion for a semiconductor plant in Ireland. Intel and Brookfield’s 2022 deal precedes this move. In late 2022 and early 2023, Intel faced “austerity,” offering unpaid leave incentives and layoffs.
December bonuses at Intel, worth thousands of euros, compensated for pay cuts during an “austerity” period. Intel calculated the grants with a 20% premium, considering performance and incentive pay reductions. In October, Intel restored pay after grim earnings projections, initially leading to freezes and salary cuts.
Promotion of Private 5G
Intel emphasized private 5G, AI, edge, transformation, and ecosystem ahead of MWC. Collaborative projects highlight industry excellence, reflecting years of investment, rapid AI, and edge growth.
The company highlighted private 5G’s mainstream adoption, boasting its end-to-end hardware and software portfolio. Gartner’s projection on enterprise data off-cloud by 2025 reinforces the importance of 5G, AI, and edge.
Caroline Chan underscored Intel’s product diversity and ecosystem integration for tailored private networks, citing benefits in intelligence, cost efficiency, and innovation.
Grab Some INTC Stock Now
Intel’s revenue surged 10% year-over-year to $15.4 billion, with earnings per share coming in at 63 cents, a significant improvement from Q4 2022. Increased chip sales and cost reductions drive progress, alongside PC sales rebound. The company’s PC chip unit revenue soared 33%, with Gaudi chips boosting AI demand.
Intel’s Q1 guidance, influenced by seasonality, conservatism, past divestitures, and FPGA underperformance, may not accurately reflect future business performance. Historically, Intel surpasses analysts’ estimates significantly, which still makes it a good investment to have.
I think Intel is a stock for long-term investors to buy, who want geopolitical stability and yield. For now, this is a stock I’m going to keep on my radar. But if it declines further from here, I’ll certainly be enticed to pull the trigger.
On the date of publication, Chris MacDonald 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.
