15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip

1. Intel Corporation (NASDAQ:INTC) 

Intel Corporation is a developer, manufacturer, designer, marketer, and supplier of computing and related services and products. It provides various products including Computer Systems and Devices, memory and storage, and microprocessors and chipsets. The stock is up 22.53% in the last week against the S&P 500’s 1.13% gains.

Intel stock has lost half its value in the last year alone, but it is now at a level where talks of bailing out the company as a matter of national security are causing an upsurge in price. Just yesterday, the Wall Street Journal reported that both Broadcom and Taiwan Semiconductor Manufacturing are interested in buying parts of Intel’s business, with Broadcom focused on the chip design and marketing part of the business.

TSM is unlikely to be given a major stake in Intel as it is a foreign entity. However, the talks of such a buyout or investment are likely to unlock a better valuation for investors, which is what’s at play here right now.

On the business front, the company’s sales went down 7% YoY in Q4 while the Network and Edge segment grew 10%. While there is potential for growth, investors are likely not betting on that right now. With former CEO Gelsigner ousted from the company and his turnaround plan in the doldrums, investors would like to see more evidence of an improving business before they put their money in the stock.

Intel is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held INTC at the end of the third quarter which was 75 in the previous quarter. While we acknowledge the potential of INTC as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.