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11. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders In Q3 2024: 68

Intel Corporation (NASDAQ:INTC) is one of the biggest chip manufacturers in the world. Unlike other semiconductor companies which either operate on a foundry model and make chips for others or which design chips to have them manufactured by foundries, the firm is the only personal and enterprise computing company that designs and manufactures its chips. However, 2024 hasn’t been kind to Intel Corporation (NASDAQ:INTC)’s stock which is down 49.5% year-to-date. This is because the firm’s personal computing business has struggled in a weak consumer spending environment and it has failed to capture AI chip demand with its products. Intel Corporation (NASDAQ:INTC) is currently laser-focused on its 18A chip manufacturing process, and success or failure with the technology coupled with its contract manufacturing subsidiary being able to attract orders should drive the stock moving forward.

ClearBridge Investments mentioned Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter. Here is what the fund said:

“While the market environment clearly was a headwind in the third quarter, several of our large positions also faced challenging conditions, which negatively impacted results. In the information technology (IT) sector, Intel Corporation (NASDAQ:INTC) has come under additional pressure due to continued softness in the company’s core PC and server markets as well as concerns on the company’s longer-term competitive position. While Intel’s turnaround is not happening overnight, we are constructive on the outlook into 2025: the company’s product positioning should be much improved and it should be positioned to gain market share in a cyclical upswing in which it has strong earnings power. A somewhat adverse spending environment due to AI myopia has weighed on shares, but we still think the market is undershipping PCs and general servers following a COVID normalization period that saw demand get pulled ahead and then languish as companies froze IT budgets. The installed base is now getting older, and we expect a strong refresh cycle into next year. The delay is actually beneficial to Intel, whose product positioning will be all the more improved. While our investment case is not predicated on an M&A transaction, and we believe one is unlikely, the expression of interest in the company speaks to the value of the assets, which we think still trade at a meaningful discount to fair value.”