This is a step-by-step stock review to answer the question, is Intel (INTC) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Intel (INTC) stock a good buy?
1. Intel Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1968: Intel was established by Robert Noyce and Gordon Moore in Mountain View, California.
- Initial Products: Started with memory chips and later shifted focus to microprocessors.
- 1971 Milestone: Launched the world’s first microprocessor, the Intel 4004, revolutionizing computing.
- 1981 Partnership with IBM: Intel microprocessors powered IBM’s first personal computer, solidifying Intel’s dominance in the PC market.
- 1990s Expansion: Introduced the iconic “Intel Inside” marketing campaign, becoming a household name.
- Technological Leadership: Consistently led in semiconductor innovation, including the development of advanced processors like the Pentium, Core, and Xeon series.
- Acquisitions and Diversification: Acquired companies like McAfee, Mobileye, and Altera to expand into security, autonomous driving, and programmable solutions.
- Data-Centric Transformation: Pivoted towards data-centric businesses, focusing on AI, cloud computing, and IoT.
- Sustainability Commitment: Invested in sustainable practices, aiming for net positive water use and 100% renewable energy by 2030.
- Global Presence: Employs thousands of people worldwide, with manufacturing and R&D facilities in multiple countries.
- Today: Intel is a leading global technology company, driving innovation in computing, networking, data storage, and more.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 17
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Intel makes money:
- Microprocessors: Sells CPUs for desktops, laptops, servers, and mobile devices, with major brands like Intel Core, Xeon, and Atom.
- Chipsets: Provides chipsets that support the functioning of their microprocessors in various devices.
- Data Center Solutions: Offers processors, memory, and storage solutions designed for data centers, including cloud computing and AI applications.
- Internet of Things (IoT): Develops processors and solutions for IoT devices used in industries like automotive, healthcare, and smart cities.
- Non-Volatile Memory Solutions: Sells memory products such as SSDs (solid-state drives) and Optane memory for enhanced storage performance.
- Graphics Solutions: Provides integrated graphics solutions and standalone GPUs (graphics processing units) for enhanced visual performance.
- Networking and Communication: Supplies networking products, including Ethernet controllers and adapters, for improved connectivity.
- Software and Services: Generates revenue from software solutions and services, including security and optimization tools.
- Mobileye Division: Specializes in advanced driver-assistance systems (ADAS) and autonomous driving technologies.
- Custom Silicon Solutions: Designs and manufactures custom chips for clients, catering to specific needs in various industries.
Here are a few of the other companies that Intel has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Altera
- Mobileye
- McAfee
- Nervana Systems
- Optane
- True Vision
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Intel stacks up against other companies.
- NVIDIA Corporation.(NVDA) – 100
- Monolithic Power Systems, Inc.(MPWR) – 78
- Aehr Test Systems.(AEHR) – 72
- Nova Ltd.(NVMI) – 72
- Axcelis Technologies, Inc.(ACLS) – 72
- Intel Corporation.(INTC) – 17
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Revitalized Intel’s Technology Leadership: Patrick P. Gelsinger Led the development of cutting-edge technologies, including advancements in semiconductor manufacturing and new CPU architectures.
- Launched Intel’s 10nm Process Technology: Oversaw the transition to Intel’s 10nm process technology, improving performance and power efficiency in processors.
- Promoted Data-Centric Growth: Shifted Intel’s focus towards data-centric businesses, expanding its portfolio to include AI, cloud computing, and autonomous driving technologies.
- Strengthened Partnerships: Enhanced Intel’s strategic partnerships with key technology companies and industry leaders, boosting collaboration and market presence.
- Reinvigorated R&D Investments: Increased investment in research and development to drive innovation and maintain Intel’s competitive edge in the semiconductor industry.
- Advanced Intel’s Security Solutions: Promoted development of advanced security technologies to address emerging cybersecurity threats.
- Corporate Restructuring: Implemented organizational changes to streamline operations and improve efficiency within Intel.
- Public Engagement: Actively engaged with the tech community and media to enhance Intel’s corporate image and communicate its technological advancements.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Intel (INTC) is 41/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Intel (INTC) stock a good buy?
Some of the top questions investors can have is Intel (INTC) stock a good buy or should I buy Intel (INTC) stock?
Intel is a strong investment option due to its leading position in the semiconductor industry and its commitment to technological innovation. The company remains a key player in microprocessors and data center solutions, with a robust portfolio of products that drive its revenue. Intel’s focus on expanding its presence in emerging technologies, including AI, 5G, and autonomous vehicles, supports its growth potential. The recent advancements in their 10nm and 7nm process technologies showcase their ongoing innovation.
However, investors should be aware of certain risks. Intel faces intense competition from other semiconductor companies, such as AMD and Nvidia, which could impact its market share and pricing power. Additionally, the company has faced delays in its product roadmaps and manufacturing challenges in recent years. Despite these risks, Intel’s strategic investments in research and development, coupled with its significant market presence, make it a promising long-term investment.
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To truly know if Intel is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on AMD.