Top 5 Stocks to Sell Now According to Billionaire Dan Loeb

1. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Shareholders: 74

Topping the list is chipmaker Intel Corporation (NASDAQ:INTC), which Dan Loeb’s hedge fund sold 9 million shares of during Q4, representing the largest holding that Third Point sold off during Q4. Hedge fund ownership of INTC has dropped by 13% in 2022.

Intel Corporation (NASDAQ:INTC) has big expectations about its longer term growth trajectory, anticipating double digit revenue growth by 2026. However, the near-term isn’t quite as rosy, as revenue is expected to decline by 4% this year. Despite that, Intel could be an intriguing addition to a dividend portfolio given its 3.1% yield and future growth prospects.

And even though Dan Loeb sold off his stake in Intel Corporation (NASDAQ:INTC), he talked up the company in Third Point’s Q4 investor letter, stating that he believed their prospects had finally turned the corner. His full comments can be read below:

“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.”

For more on the latest trades made by some of the biggest hedge fund managers in the world, check out 10 Undervalued Dividend Kings To Buy In 2022 and 10 Stocks to Buy Now According to Hari Hariharan’s NWI Management.

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