Intel: Is the entry into AI coming too late?

Last Updated: 20. Februar 2024By

You probably know Intel. Because Intel Corp. is one of the largest companies in the semiconductor chip sector. It develops advanced digital technology solutions and supplies the computer and communications industry with a wide range of semiconductor memory chips, circuits, storage disks, cards, and systems, as well as microprocessors.

Strong profit increase of 260%. In the fourth quarter, Intel achieved a profit of $0.54 per share, compared to $0.15 per share in the previous year. This is a strong profit increase of 260%. Analysts had expected a profit of $0.45 per share. Revenue rose to $15.41 billion compared to $14.04 billion a year ago.

Intel enters the AI game for data centers too late. If you follow current developments, you know that AI is coming, across all industries. This requires high-performance chips and data centers. Several companies have already been mentioned that will benefit from this – but Intel has not been among them. While other companies benefit from a first-mover advantage, Intel is jumping on the AI train late and has to work hard to secure a good position.

Cautious forecast for the current quarter. However, Intel’s late entry into the AI game does not prevent the company from making a forecast. However, it is very cautious. For the current quarter, Intel expects a profit of $0.13 per share with revenue between $12.2 and $13.2 billion. Analysts expect the company to earn $0.32 per share with revenue of $14.15 billion in the first quarter.

Cautious sentiment among analysts. Conclusion: Intel is moving in a one-year uptrend, but since the beginning of the year, the air has gone out of it. Looking at analyst expectations, the sentiment is not improving. 8 out of 43 analysts recommend buying, 28 recommend holding, and 7 analysts want to sell. The stock has already reached the average analyst price target of $45. Some analysts see potential up to $68. With a P/E ratio of 32, Intel cannot be considered undervalued compared to other chip stocks.