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The current position of Intel is not the best right now, analysts do not pity it, which at the same time is a good signal for adherents of the opposite trade to enter the game. Further we will analyse the major points of our Intel stock forecast.
At the same time, Google, despite the unenviable position of the company, decided to team up with Intel to create a new generation chip for data centers.
Intel (NASDAQ: INTC) is going through tough times, and with the bulk of analysts predicting further price declines, investors trading against the trend should take a closer look at the stock. After all, we can expect the price to rebound soon, especially with Google teaming up with the company for a new project.
In addition, Intel is a leader in manufacturing microprocessors and in good times, when the stock had a much higher price, there was no shortage of shareholders.
However, the company is clearly undervalued, so the stock can be bought at a very favorable price. And if you take into account its annual dividend yield of 5.8%, it becomes clear that Intel is quite a tidbit for investors.
A little bit about the company.
Intel was founded in 1968 by Robert Noyce, the inventor of the chip and Gordon Moore, author of « Moore’s Law», the third co-founder – businessman Andrew Grove, now heads the Intel Board of Directors.
The company’s key goal was to create memory devices based on silicon chipsets and processors. The company now makes motherboards and flash memory for computers.
In 1971, Intel created a chip with the Japanese company Busicom, followed by the creation of the Intel 4004 microprocessor. It was small in size, but comparable in power to an 85cc Eniac computer.
Thanks to Intel, personal computers began their existence. which are now a familiar part of our lives. The i286 microprocessor (1982), i386 (1985), i486 (1989) these processors are the intellectual centers of all modern PCs.
The Pentium Processor and Celeron are known even to those who first sat down at a computer.
Intel was the founder and largest manufacturer of microprocessors, filling the market with an innovative and most reliable product.
At the moment the company also finances communications technology, because flash memory is also used in telephony.
Analyst estimates.
Pessimistic sentiment prevails among most analysts and they reduce the target value of the stock. Analysts at Goldman Sachs cut it most to $23. Deutsche Bank is a little better, but also reduced the price from $38 to $35. The same opinion is held by Barclays and Wedbush analysts.
At the same time the experts of Northland Securities though reduced the price from $55 to $52, however their mood is not so sad, as the rating for Intel stock forecast “better than the market” remained unchanged.
Wall Street analysts currently give a consensus hold rating based on 15 holds, 4 buys and 8 sales.
The average price target is $36.62 and the upside potential is 46.3%. Highest price target $52.
Source: Tipranks
Mobiley will separate.
In order to focus on the more profitable sectors of its business, the corporation plans to sell one of its business segments. This is Mobiley, which the company is preparing to spin off as an IPO (initial public offering). Mobiley is engaged in the production of advanced driver assistance systems, an industry that is very promising given the rapid development of unmanned systems for cars. Although the company is currently at a loss, this deal is likely to be one of the most significant tech events of the coming year.
Intel and Google Cloud will join forces.
Google Cloud, despite the disappointing forecasts of analysts, is going to join forces with Intel to create an innovative chip that will significantly improve the efficiency and security of data centers. The official name of the chip is E2000.
Google Cloud will take charge of packing data to run on the network from the processors that do the basic computing.
If giants like Google Cloud and Intel get to work together, we should expect great results regarding the improvement of various data centers.
Bottom Line.
Despite the fact that at the moment, Intel has some difficulties, and analysts’ estimates are quite pessimistic, we should not forget that the company is still one of the largest manufacturers of chips.
The planned moves to spin off Mobiley and its tie-up with Google Cloud will likely boost Intel’s (NASDAQ: INTC) stock value.
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