17. Intel Corporation (NASDAQ:INTC)
Weekly Decline: 11.04%
Number of Hedge Fund Holders: 75
Intel Corporation (NASDAQ:INTC) is a semiconductor company based in Santa Clara, California. It offers computing and related products and services worldwide.
This company may be a red flag for many investors since, on the first Tuesday of September, Intel Corporation (NASDAQ:INTC) was hit with reports that it could lose its place in the Dow Jones Industrial Average. Additionally, competitor Qualcomm is also reportedly looking into buying segments of Intel Corporation (NASDAQ:INTC), potentially including its PC chip design business. While this deal, if it comes to fruition, may be considered a positive development for Intel Corporation (NASDAQ:INTC) by some, others are concerned about the possible loss of an innovative and lucrative segment and its impact on Intel Corporation (NASDAQ:INTC) in the aftermath.
Public opinion surrounding Intel Corporation (NASDAQ:INTC) has also been negative because of its dismal second-quarter earnings report since revenue for the company fell by 1%, and adjusted EPS came in at $0.02, down from $0.13 from a year ago. Investors are also disappointed because of Intel Corporation’s (NASDAQ:INTC) underwhelming third-quarter guidance with revenue of $12.5 billion to $13.5 billion, which implies a decline of 8% at the midpoint. Additionally, the company also eliminated its dividend in the interest of cash conservation – a justifiable reason, but one that has still been off-putting for investors.
In light of all these factors, Intel Corporation’s (NASDAQ:INTC) decline in the first week of September seems to make sense. Those interested in big tech and semiconductor players in the market at present may do well by steering clear of Intel Corporation (NASDAQ:INTC) at least for the moment.
Intel Corporation (NASDAQ:INTC) was spotted in the 13F holdings of 75 hedge funds in the second quarter, with a total stake value of $1.9 billion.
Ariel Investments mentioned Intel Corporation (NASDAQ:INTC) in its second-quarter 2024 investor letter:
“Alternatively, several positions weighed on performance. One of the world’s largest semiconductor chip manufacturers by revenue, Intel Corporation (NASDAQ:INTC), underperformed in the period on news of a longer than expected turnaround in profitability within the Foundry business. This was exacerbated by disappointing near-term guidance due to a weakening demand environment signaling an extended replacement cycle. We view the quarter as a temporary trough that should dissipate as we see signs of a cyclical recovery for personal computers (PCs) and central processing units (CPUs), driven by the Windows 11 upgrade. In our view, the market is overlooking the progress Intel is making to advance its manufacturing process. Not to mention, the company’s efforts to serve as a viable second source foundry partner of leading-edge silicon. We believe the separation of the design and manufacturing businesses will be a key catalyst in unlocking improved financial performance while also enhancing the competitiveness of the foundry business.”
