Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Intel, once a glamorous semiconductor manufacturer, has suffered several setbacks in recent years due to its rigid business model and underinvestment in high-growth areas. While competitors like NVIDIA, AMD and Taiwan Semiconductor Manufacturing Company have thrived, Intel has plunged 36% so far this year, making it the worst-performing technology stock in the S&P 500.
Intel’s troubles began when it missed the mobile chip boom by failing to strike a deal with Apple Inc. The mobile chip market, now worth $23.7 billion, is dominated by TSM. Intel’s rigid business model has also contributed to the loss of its semiconductor market share to TSM and its chips business to NVIDIA and AMD.
However, Intel is overhauling its business model and making significant efforts to catch up with the competition. CEO Patrick Gelsinger says the company is accelerating its efforts to close the technology gap created by a decade of underinvestment, with the aim of catching up by 2026.
Despite the challenges, Intel remains the undisputed champion in the CPU manufacturing industry, with half of its revenue coming from this segment. Canalys, a leading analyst firm for the global technology market, predicts that global PC shipments will explode in 2024 and 2025, driven by AI-enabled PCs. Analysts predict that Intel’s revenue from this segment will grow 11% year-over-year in 2024 and 21% in 2025.
Intel is also expected to benefit from its data center and AI segment, which accounts for around 30% of total revenue. The company’s recently released Gaudi 3 AI accelerator performs 50% better than NVIDIA’s H100 GPU on AI tasks, while being cheaper and more power efficient.
As Intel works to regain its position as the market leader in the chip industry, the stock could be a good buy for long-term investments. Intel is currently trading at the bottom of a 52-week low and offering the opportunity to buy at a discount.
For income investors, Intel offers a dividend yield of 1.62% and has increased its dividend eight years in a row.
Looking for opportunities with high returns?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to earn huge returns, but not through dividend stocks… Certain private market real estate investments offer retail investors the opportunity to take advantage of these high-yield investments. possibilities and Benzinga has identified some of the most attractive options for you.
For example, Basecamp Alpine Notes offers a target APY of 9% with a term of just three months, making it a powerful short-term cash management tool with incredible flexibility. EquityMultiple has issued 61 Alpine Note Series and has met all payment and financing obligations with no missed or late interest payments. With a low minimum investment of just $1,000, Basecamp Alpine Notes makes it easier than ever to start building a high-yield portfolio.
Don’t miss this opportunity to take advantage of high-yield investments while interest rates are high. See Benzinga’s favorite high-yield deals.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This article Intel drops nearly 40% YTD: a buying opportunity for dividend investors? originally appeared on Benzinga.com
