20 Trending AI Stocks on Latest Analyst Ratings and News

17. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 75     

Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. Latest reports, published by Bloomberg, claim that investment firm Apollo Global Management has offered to invest billions of dollars into troubled chipmaker Intel. The investment, worth up to $5 billion, is under consideration by Intel. The investment proposal comes amid reports of a QUALCOMM offer to buy Intel, which analysts have dismissed as regulatory improbable. Intel is considering the sale of parts of the business as it struggles to improve financials. Some of the options on the table include splitting the foundry business and possibly scrapping factory projects.

Northland has an Outperform rating on Intel Corporation (NASDAQ:INTC) stock with a price target of $42. In a recent investor note on the chipmaker, the investment advisory underlined that the US military had no alternative to TSM other than Intel for advanced logic chips and noted that the Department of Defense required that the chips they use be manufactured on US soil. For these reasons, the advisory claimed, the Daddy War Buck would continue to provide funding to the chipmaker, even though Intel needed to be split into pieces to justify the present price target.

Some investors are saying that Intel Corporation (NASDAQ:INTC) is a deep value stock while it trades at less than book value, but is it? The stock is currently trading at ~ 13 times its projected operating cash flow, a 43% discount to its sector. Going by Intel’s executions in the past which includes missed deals with a leading smartphone giant, delayed plants for advanced chips, losing share aggressively to competitors, it might not be a good idea to expect the company to suddenly become a cash cow, while it’s still struggling to catch up to competitors.