8 Best Stocks Under $50 To Invest In Now

03. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 75

Share Price as of September 27: $23.91 

Intel Corporation (NASDAQ:INTC) is a leading player in the semiconductor industry, known for its innovative technologies and robust product portfolio. Despite reporting earnings per share (EPS) of just $0.02 for Q2 2024, falling short of the expected $0.1008, the company is poised for significant long-term growth driven by strategic investments and operational efficiencies. The current number of hedge fund holders stands at 75 as of Q2 2024, slightly down from 77 in the previous quarter, reflecting a stable investor interest in the company amidst market volatility.

Intel Corporation (NASDAQ:INTC) management, led by CEO Pat Gelsinger, has outlined a proactive approach to improving profitability and capital efficiency. The company aims to achieve over $10 billion in cost savings by 2025 through a combination of operational adjustments and a significant reduction in spending, which is expected to lower operating expenses (OpEx) to approximately $20 billion in 2024. This cost-reduction strategy is vital as Intel transitions to a new operating model that separates financial reporting for its products and foundry services, allowing for greater transparency and focused resource allocation.

Moreover, Intel Corporation (NASDAQ:INTC) strategic investments in artificial intelligence (AI) and advanced semiconductor technologies position it well for future growth. The introduction of the AI PC category is set to accelerate market demand, with expectations that AI PCs will comprise more than 50% of the market by 2026. The upcoming launch of Panther Lake, Intel’s first client CPU using the 18A process, is anticipated to further enhance performance and profitability.

Financial metrics support a bullish outlook as well. Intel’s targeted capital expenditures (CapEx) for 2024 are expected to range between $25 billion and $27 billion, reflecting a 20% reduction from previous plans. This smart capital strategy will not only drive cost efficiencies but also pave the way for sustained growth in revenue and market share. Additionally, the anticipated launch of Xeon 6 and the innovative Gaudi 3 accelerator will strengthen Intel Corporation (NASDAQ:INTC) competitive position in the data center and AI markets.

In summary, while Intel’s short-term earnings miss may raise concerns, the company’s aggressive restructuring efforts, substantial cost-saving measures, and strategic focus on high-growth markets present a compelling investment case. The fundamentals of the business, coupled with a commitment to long-term shareholder value, indicate that Intel Corporation (NASDAQ:INTC) is well-positioned to navigate challenges and capture future opportunities.