1. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 72
Share Price (as of March 1): $46.82
Intel Corporation (NASDAQ:INTC) is a chip-maker based in the United States and offers various technologies for smart devices around the globe.
In February, Raymond James analyst Chris Caso upgraded Intel Corporation (NASDAQ:INTC) to ‘Market Perform’ from ‘Underperform’. The firm has announced plans to invest $100 billion towards building chip-making plants in the coming years and will also release new central processing chips every year until 2025. This is part of the company’s long-term plan to accelerate growth and catch a bigger portion of the competitive chip-making market. Intel Corporation (NASDAQ:INTC) expects revenue to increase 1.7% to $76 billion this year, grow 5-9% in 2023 and 2024, and post 10% to 12% gains in 2025 and 2026.
Reporting its Q4 earnings on January 26, Intel Corporation (NASDAQ:INTC) posted an EPS of $1.09, which beat consensus estimates by $0.18. $19.53 billion in revenue for the quarter was also above analysts’ forecasts by $1.21 billion.
The craze around the semiconductor industry was evident from investor behavior, and Intel Corporation (NASDAQ:INTC) remains one of the biggest names in the industry. Tellingly, 72 hedge funds held stakes in Intel Corporation (NASDAQ:INTC) at the close of the fourth quarter, with a combined value of $5.5 billion. This is up from 66 hedge funds with stakes in the company a quarter ago.
Third Point Management mentioned many stocks in its Q4 2021 investor letter, and Intel Corporation (NASDAQ:INTC) was one of them. The fund said:
“2021 was a highly productive year for Intel‘s new CEO, Pat Gelsinger. Despite the stock’s tepid results, we see a compelling, underappreciated fundamental story. Intel’s “brain drain” – a key part of our thesis when we first sought to help the company confront its long-time underperformance – appears to be reversing. Since joining Intel, Mr. Gelsinger has not only brought back prominent Intel former employees but has also attracted talents from competitors such as AMD, Nvidia, Apple, and, most recently, Micron’s stellar Chief Financial Officer, David Zinsner.
We are encouraged by Intel’s aggressive investment plan, including a recently announced fabrication plant in Ohio and acquisition of Tower Semiconductors. We knew from the start that Intel’s turnaround would be complex and lengthy, and we have been pleased to see Mr. Gelsinger sacrifice near-term earnings for long-term growth.
Finally, after a series of blunders across its PC and Server product lines, Intel is finally receiving good reviews for one of its upcoming processors: Alder Lake. Tom’s Hardware, a preeminent hardware publication, called Alder Lake “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.” While this is just one product across a broad lineup, and given it will take time to achieve leadership across them all, we are encouraged by these tangible signs of progress under Mr. Gelsinger’s leadership. With talent returning, an improving product suite, and a willingness to invest for growth, we believe Intel’s prospects have turned the corner. We expect that the company’s upcoming analyst day will be an ideal time for Mr. Gelsinger to articulate the progress he has made and begin to reset expectations for the company.”
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