This year, investors stopped worrying that stock market growth would be too slow. After last year’s false start, it is now clear that economies are poised to rebound, with restrictions being gradually lifted globally. But where do we put the Intel shares as they seek to recover from the lost output?
Intel (NASDAQ: INTC) might be one of the cyclical stocks that seems appealing due to the correlation with consumer spending and strong earnings results. Notably, INTC’s earnings have grown by 17.6% per year over the past five years.
For most companies, 2021 is turning out to be “a transitional year”, which was the opinion Intel CEO Pat Gelsinger shared recently. Still, the sea change hasn’t come immediately, and the chip giant still has a lot to prove. With all the additional resources thrown at Intel’s technological infrastructure, it has the potential to make this work.
The article covers the following subjects:
Let’s dive deep into the company to see where it’s headed. What is the future of Intel’s stock? Find out in this Intel stock price forecast.
A Short Overview of Intel Stocks
What is Intel’s company profile? How much does it cost to buy stock in Intel? What else do I need to know?
Intel designs, manufactures, and sells components and related products for retail, industrial, and consumer uses worldwide. The company is known for its central processing units and chipsets, boards and systems, connectivity products, and memory and storage products.
A summary of Intel Corporation stock:
Market cap: 224 billion
Shares outstanding: 4 billion
Earnings per share: 4.45
Price-to-earnings ratio: 12.44x
Annual dividend/yield: $1.39/2.51%
Held by institutions: 63.02%
Payout ratio: 41.95%
Short interest: 1.24%
Historical volatility: 38.7%
Intel became a publicly-traded company on October 13, 1971, at an entry price of 23.50 US dollars per share. Adjusted for 13 subsequent stock splits, the trading price was 2 cents.
The current Intel share price is 53.82 USD.
Intel files quarterly reports with the SEC, which are in open access. We post the earnings releases and quarterly revenue statements. According to the end-of-year report, in the past year, Intel generated a record $35.4 billion from operations and $21.1 billion of free cash flow, having returned $19.8 billion to shareholders.
Main Driving Factors Behind the INTC Price
We’re going to name and describe three factors with the biggest effect on the Intel share price forecast.
Last June, Apple caused a major blow to Intel’s reputation. Apple confirmed that it would transition its Mac laptop and desktop computers to its own ARM-based processors. Taiwan Semiconductor was chosen as the sole manufacturer. This triggered a downward trend that started at $64.34 and didn’t stop until hitting $47.73.
The announcement meant that Intel processors were on the way out in regards to their partnership with Apple. Based on some estimations, Intel was getting 5.8% of its total revenue from supplying microprocessors to Apple. Apple’s M1 chip reportedly has 3.5-times faster central processing unit performance as well as better graphics and power efficiency.
If that wasn’t enough, Microsoft was also reported to be designing its own chips. Those will be ARM-based processors for Azure servers and Surface PCs.
If Intel wants to survive this, it has to step up its game. With both Apple and Microsoft stepping on their toes, the stakes are very high.
Intel is investing $20 billion into two new semiconductor fabs in Arizona. If this goes as planned, it should make Intel a major provider…