I understand the long term aspect of investing but it may be worth while to revisit previous valuations to find some lessons learned about assumptions made. Just a thought. Thanks for the vid-e-o
Thanks Jimmy. Anytime I want some insight on value, you are one of my go tos. As the upside is so far in the future, it is going to be challenging to be patient with this one.
Finally. Intel should have cut the dividend long ago. But the way they did it is concerning. Cutting it is 100% correct, though. That said, it's not enough to get my support back. Intel failed to perform for too long, which led to me eventually selling out and rotating into other plays.
Thanks for the update! Certainly it's kinda undervalued, though I think not so much as you say, at least for the first years since some more pain is expected in the next quarters... But yeah, as a long-term investment it's good and makes sense. I just invested way too much way too early and I'm down quite a bit, but... I'm not selling, not while it's around prices one should be buying... Anyway, hope the investments produce their intented free cash flow and the stock soars quite a bit next year!
The most important thing that should be on everyone's mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies.
I have been investing in stocks for over 10 years now and I have made a lot of money. My portfolio has grown exponentially and I can't thank stocks & ROCHELLE DUNGCA-SCHREIBER enough for such an amazing way to make money!
Hey Jimmy, I must say I really love your videos! And also just telling you that I was the 16 year old who emailed you, and would love to hear back from you!
That's great that they made a logical move, I'd expect nothing less. However with respect this seems like some of the deepest scraping of the buttom of the barrel I've come across in position rationalisation.
don't see any reason to buy in INTC now given that all their plans are in the air and nobody knows whether they will be successful with them or not, the Dividend would have soften the waiting journey but now that it has been slashed, I'd rather wait
IMO Intel is still a value trap. While the numbers may say that Intel is at fair value today, I'd look at what the numbers said Intel was worth a few years ago based on the same calculations, and see how much those future earnings estimates held up to reality.
Half their profits for the one fab being built on Arizona. Though I’m not sure how it is structured for reporting purposes. Intel might get to report all the profits and then pay out of the free cash flow to Brookfield for all I know
exactly, assuming their plan works out! this is a big assumption, a big ?. They are cutting shareholder's return to "bet" on their plan by spending big, perhaps you should assign some sort of probability of it working out, if 100% sure then it should worth 41, but if 70%? 50%? And this capital spending is only trying to catch up with competitors. if you remember buffett's story with his textile company, you know this kind of capital spending isn't likely to bring/build them competitive edge. The yield after cutting 2/3 still looks not bad, it is because their price down a lot too and this spiral can go on and the yield would never look bad. just 2 cents, good luck.
Is my math correct in that a 9% RR over 6 years would put the price in the 65-70 range, which is far beyond what it's ever done historically? I own the stock but that fair value number feels dubious.
they just took away the whole reason I chose them over AMD the dividend and now AMD went up $40 a share and Intel is still dead stick..lesson learned don't chose a stock just because of its dividend
This is a classic value trap - cheap shares struggling to grow or turnaround. Intel obviously has lost its unique franchise. Semi-conductors are highly competitive, high political interference and high asset intensive industry. Profit warning like bad luck, comes in threes. I see no good reason why you still want to own shares in a company struggling to compete with expected lower margins and higher CapEx. If you need to find value doing a dcf model, maybe you need to walk away and look at something with an obvious value. Falling love in a stock and believing in turnaround stories are usually not good for your bank account.
a big, big, big question for me would be how much money are they trying to raise for these foundries. despite interest rates on governments it's still far better to raise as much capital as possible now to save themselves from some headaches in the future. if the foundry projects ever have delays (they will) or cost overruns (they will) or any difficulty (they will) the spreads on further debt issuance will widen considerably. at that point they'll probably turn to dilution, which I don't like.
A lot of there funding will be coming from government subsidizing in the US and Europe, adding debt and partnerships with other companies like brookfield to cover the rest of there costs. There have been large construction cost increases in Europe slowing there expansion plan right now so they will have to use more debt unfortunately.
Also they have revised the stages of the buildouts of the new plants. They are going to do the shell construction part of the build outs first with minimal foundry equipment. Then they will buildout the fab equipment as the capacity need increase. So that $20B for Arizona will maybe be spread out over 8 years instead of 4
Video is very informative and interesting. Try to level your video making skills or hire someone to make it more interactive, personal opinion. Keep it up and awaiting next one.
You're still trying to justify. You're still in denial. You were wrong about this stock. I cannot for the life of me understand why you wouldn't just buy TSM or AVGO. Get out Jimmy, you're doing so well with everything else!
@@LearntoInvest Don't worry, my hair look like that (and even gray came out) when I sold my RR.L recently because, silly me, I was thinking it will fall after a run from 0.60 to 1.00, hoping to buy back more cheaper... then it went another 50% up. 🤣
Intel is a terrible stock. I got out a fews years ago at about $50. Too much competition from AMD, TSMC and even Nvidea and failure to deliver the newest technologix. I don't know what else there is to talk about.
I’ll buy Intel when they have a viable product. Currently, they don’t. Technical analysis can’t show you that their processors are worse than AMD’s objectively, but more importantly - they don’t have an upcoming architecture to dig them out of this hole.
This is a huge value trap. The CEO months ago on national TV said the dividend was safe and the company was committed to it. 30 days later, they gut the dividend. And this company is spending huge cap ex on the bet that its going to rival TSMC who has a near monopoly in the foundry business, and virtually owns the advanced chip business. Bad management and a huge speculative play on the foundry business make this stock a HELL NO.
INTC has been Dead Money for > 2 decades. Useless wasting time here. From where it stands now to get to 41, is mere peanuts. Analysts downgrades will follow and it will be right back in the 30's again. But I do wish them the best in their Reorganizing.
IMHO Intel CEO needs to go. Intel's tech can't compete with ARM (that's why apple dumped them). You can look at the fundamentals all you want and this might be a good short term trade, but all I see is a value trap that is getting crushed by competition and lots of money being thrown into their uncertain future.
Jimmy I can tell you first hand, you’re holding dead money. There’s much better investments. There’s a reason they’re having to restructure here. And it isn’t because they’re doing a good job.
Intel is undervalued imo. After looking into their 10k this will be a buy for me. Company has been around forever. They are still making billions and profiting.
I thought Intel was a developed company which had dominated most of the world and had a reputation. Intel management acting like a startup, we'll invest for 10 years etc. People invested for dividend, when stock price dropped people didn't care because profit was there. But now they want to "save money" for future investments. Trash companies will do this strategy and explain like they will dominate the world. Your products are worse than AMD and more expensive period Instead of solving this problem they want to cut costs, invest big and "try" to compete. Im glad I sold this shitty company 2 years ago and never looked back.
Great job Jimmy. INTC my biggest position. Holding long.
I'm with you. Wouldn't mind it dropping to buy more.
I'm in at 32.10. I'm holdin
The cut of the dividends is the right move. I was not comfortable with the measures for the turn around and a high quality divided.
I continue to add to my position and I am long on this company. The engineers are back at the helm.
I was waiting on this update for a while... thank you!
I understand the long term aspect of investing but it may be worth while to revisit previous valuations to find some lessons learned about assumptions made.
Just a thought. Thanks for the vid-e-o
Thanks Jimmy. Anytime I want some insight on value, you are one of my go tos. As the upside is so far in the future, it is going to be challenging to be patient with this one.
loaded up some intel, they are dirtcheap and they are on track to beat AMD again... i can see them going back to $60 next year.
Well done Jimmy. You are always the best when it comes to valuations. Thanks.
Yes Jimmy, good work that you fuc*** with INTC
Was waiting for this update ever since they announced the cut!
I love your mention about the credit agencies, was wondering what the ratings meant since first Republic had a double downgrade of their own
Finally. Intel should have cut the dividend long ago. But the way they did it is concerning. Cutting it is 100% correct, though.
That said, it's not enough to get my support back. Intel failed to perform for too long, which led to me eventually selling out and rotating into other plays.
Jimmy , can we find the ratings for every listed company??? if so where can we find it ???
Thanks for the update! Certainly it's kinda undervalued, though I think not so much as you say, at least for the first years since some more pain is expected in the next quarters... But yeah, as a long-term investment it's good and makes sense. I just invested way too much way too early and I'm down quite a bit, but... I'm not selling, not while it's around prices one should be buying... Anyway, hope the investments produce their intented free cash flow and the stock soars quite a bit next year!
Thanks again Jimmy!
Brilliant analysis.. been waiting for this video for months.. thank you!!!
The most important thing that should be on everyone's mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies.
I have been investing in stocks for over 10 years now and I have made a lot of money. My portfolio has grown exponentially and I can't thank stocks & ROCHELLE DUNGCA-SCHREIBER enough for such an amazing way to make money!
Digital currency is not investing, it's speculating there will be a bigger fool down the line that will pay you more than what you paid.
Hey Jimmy, I must say I really love your videos! And also just telling you that I was the 16 year old who emailed you, and would love to hear back from you!
That's great that they made a logical move, I'd expect nothing less. However with respect this seems like some of the deepest scraping of the buttom of the barrel I've come across in position rationalisation.
At a cursory listen I should add.
Peter Lynch says no to turnaround plays. Thoughts?
Good day Jimmy. Can you do one evaluation video for TSM. Much appreciated
Great risk to reward now I would say
Hi, great info, your videos are great!
don't see any reason to buy in INTC now given that all their plans are in the air and nobody knows whether they will be successful with them or not, the Dividend would have soften the waiting journey but now that it has been slashed, I'd rather wait
They certainly P’ed off the dividend investors much like AT&T. Like Jimmy I gotta think long since selling now would be a decent sized loss.
In regards to company longivity...Revlon has been around for a long time and it is bankrupt.
IMO Intel is still a value trap. While the numbers may say that Intel is at fair value today, I'd look at what the numbers said Intel was worth a few years ago based on the same calculations, and see how much those future earnings estimates held up to reality.
INTC will be $65 by end of 2026.
Brookfield is also going to take half of the profits
Half their profits for the one fab being built on Arizona. Though I’m not sure how it is structured for reporting purposes. Intel might get to report all the profits and then pay out of the free cash flow to Brookfield for all I know
IDM stands for Intel's Domination Masterplan.
Hope it is not cced IBM.
exactly, assuming their plan works out! this is a big assumption, a big ?. They are cutting shareholder's return to "bet" on their plan by spending big, perhaps you should assign some sort of probability of it working out, if 100% sure then it should worth 41, but if 70%? 50%? And this capital spending is only trying to catch up with competitors. if you remember buffett's story with his textile company, you know this kind of capital spending isn't likely to bring/build them competitive edge. The yield after cutting 2/3 still looks not bad, it is because their price down a lot too and this spiral can go on and the yield would never look bad. just 2 cents, good luck.
Is my math correct in that a 9% RR over 6 years would put the price in the 65-70 range, which is far beyond what it's ever done historically? I own the stock but that fair value number feels dubious.
Intel's stock was 68/share in April 2021
I wonder if all maths teachers have become billionaires?
The stock was at that price two years ago.
That FCF jump is ridiculous. Why not scale that back and be more conservative/realistic..
How did free cash flow jump from 3 to 14 billion from 2025 to 2026?
Cause by that point they will no longer be spending money on all these factories/foundries. The cash flow should increase tremendously by then.
they just took away the whole reason I chose them over AMD the dividend and now AMD went up $40 a share and Intel is still dead stick..lesson learned don't chose a stock just because of its dividend
This is a classic value trap - cheap shares struggling to grow or turnaround. Intel obviously has lost its unique franchise. Semi-conductors are highly competitive, high political interference and high asset intensive industry.
Profit warning like bad luck, comes in threes. I see no good reason why you still want to own shares in a company struggling to compete with expected lower margins and higher CapEx. If you need to find value doing a dcf model, maybe you need to walk away and look at something with an obvious value. Falling love in a stock and believing in turnaround stories are usually not good for your bank account.
Sold this dumpster fire of a stock a few months ago, and couldn’t be happier. There’s some decent long-term upside, but in the short-term it’s tough.
a big, big, big question for me would be how much money are they trying to raise for these foundries. despite interest rates on governments it's still far better to raise as much capital as possible now to save themselves from some headaches in the future. if the foundry projects ever have delays (they will) or cost overruns (they will) or any difficulty (they will) the spreads on further debt issuance will widen considerably. at that point they'll probably turn to dilution, which I don't like.
A lot of there funding will be coming from government subsidizing in the US and Europe, adding debt and partnerships with other companies like brookfield to cover the rest of there costs. There have been large construction cost increases in Europe slowing there expansion plan right now so they will have to use more debt unfortunately.
Also they have revised the stages of the buildouts of the new plants. They are going to do the shell construction part of the build outs first with minimal foundry equipment. Then they will buildout the fab equipment as the capacity need increase. So that $20B for Arizona will maybe be spread out over 8 years instead of 4
Yeah, why don't tell Intel to STOP making those back-door CPU chips from the Middle East
M-chips from apple. Enough said.
Video is very informative and interesting. Try to level your video making skills or hire someone to make it more interactive, personal opinion. Keep it up and awaiting next one.
Never buy companies that perform poorly just because they are cheap. Dont listen to Jimmy on this one folks
You missed everything he has ever said about Intel.
Why he likes Intel over AVGO I’ll never know
You're still trying to justify. You're still in denial. You were wrong about this stock. I cannot for the life of me understand why you wouldn't just buy TSM or AVGO. Get out Jimmy, you're doing so well with everything else!
Looks like the bear market took a toll on Jimmys hair.
Pointless comment which doesn’t add any value. I bet you’re as bald as a nugget.
Rude
Lol, it’s ok, I really do need a haircut 😬
@@Rainn2407 Chill, just a joke.
@@LearntoInvest Don't worry, my hair look like that (and even gray came out) when I sold my RR.L recently because, silly me, I was thinking it will fall after a run from 0.60 to 1.00, hoping to buy back more cheaper... then it went another 50% up. 🤣
Intel is a terrible stock. I got out a fews years ago at about $50. Too much competition from AMD, TSMC and even Nvidea and failure to deliver the newest technologix. I don't know what else there is to talk about.
I’ll buy Intel when they have a viable product. Currently, they don’t.
Technical analysis can’t show you that their processors are worse than AMD’s objectively, but more importantly - they don’t have an upcoming architecture to dig them out of this hole.
This is a huge value trap. The CEO months ago on national TV said the dividend was safe and the company was committed to it. 30 days later, they gut the dividend. And this company is spending huge cap ex on the bet that its going to rival TSMC who has a near monopoly in the foundry business, and virtually owns the advanced chip business. Bad management and a huge speculative play on the foundry business make this stock a HELL NO.
INTC has been Dead Money for > 2 decades. Useless wasting time here. From where it stands now to get to 41, is mere peanuts. Analysts downgrades will follow and it will be right back in the 30's again. But I do wish them the best in their Reorganizing.
IMHO Intel CEO needs to go. Intel's tech can't compete with ARM (that's why apple dumped them). You can look at the fundamentals all you want and this might be a good short term trade, but all I see is a value trap that is getting crushed by competition and lots of money being thrown into their uncertain future.
Jimmy I can tell you first hand, you’re holding dead money. There’s much better investments. There’s a reason they’re having to restructure here. And it isn’t because they’re doing a good job.
Well thought out
Does any company restructure because they ARE doing a good job?
Intel is undervalued imo. After looking into their 10k this will be a buy for me. Company has been around forever. They are still making billions and profiting.
@@MrSamdabeast how is it well thought out? He didn't say any details or any info at all to support why its not a good restructuring lol
@@hodokwaja sarcasm
I thought Intel was a developed company which had dominated most of the world and had a reputation.
Intel management acting like a startup, we'll invest for 10 years etc.
People invested for dividend, when stock price dropped people didn't care because profit was there. But now they want to "save money" for future investments.
Trash companies will do this strategy and explain like they will dominate the world.
Your products are worse than AMD and more expensive period
Instead of solving this problem they want to cut costs, invest big and "try" to compete. Im glad I sold this shitty company 2 years ago and never looked back.
i think Jimmy is not allowed to talk about Intel until it hits back $44. Jimmy, you owe me an year of dead money
What a stupid comment.
All these fake comments 😂