Is it the right time to buy Intel...or not?
To buy Intel, or not to buy Intel: that is the question. You can find Intel chips everywhere; probably in your Mac, PC, phone or laptop. Don't be surprised because Intel dominates most of the CPU market share of over 75%.
Now lets get back on topic and focus on the whether you should buy or not buy Intel. Intel stock(INTC) has been suffering a lot for the past few weeks from the trade war with China and even a new CPU released by AMD that could beat the tough Intel's Core i9-9980XE. Even though Intel dominates the CPU market and has more sales than their competitors, which would be good for their shares; however, they are experiencing rough times.
Intel's trade with Huawei accounts for 1% of its revenue, but the trade ban on Huawei a few weeks ago negatively impacted Intel causing its shares to fall. Intel is having talks with the Trump Administration and Huawei about reversing the ban which would help boost Intel's shares, but it
is uncertain if the ban will actually be reversed. If the trade ban is reversed for Intel, then it would be a good time to buy Intel shares before they rise from an increase in revenue by supplying Huawei. I would recommend you to wait and not buy the stock until their is a positive news about the trade ban ending because the stock could go lower as their revenue decreases.
Intel's major competitor, AMD, is releasing a new CPU, the Ryzen 9 3950X, which costs $749 while Intel's top CPU, the Core i9-9980XE, costs $2000. AMD's new CPU has a less cores, a higher boost frequency, has a little better performance, and is cheaper than Intel's CPU. This can mean bad news for Intel because their sales can fall when tech companies switch to a the Ryzen 9 3950X from the Core i9-9980XE. Intel needs to respond with a better and cheaper CPU than the Ryzen 9 3950X or else they will lose sales which would cause its shares to plummet. I think that it isn't the best time right now to buy Intel because its competitors are catching up to them which could pose a threat to their dominance in the CPU market and hurt their company and shares.
Overall I think that Intel is not a buy because its revenue is being hurt from a trade ban and a better CPU being produced by their main competitor.
Comments
Post a Comment