Why Intel Stock is a must buy

Intel appears to have been beaten to a pulp recently. The old man is barely moving, and it appears that it will fall on his face at any moment. It dropped from $68.26 on 9 April 2021 to $29.24 on 16 September 2022. A horrible downturn, which made most investors say goodbye to the stock. However, this was expected of Intel since new CEO Patrick P. Gelsinger took over.

The company was in a bad situation before he took over, as it forgot about what made them big — technology. Now, Intel is on its way to regaining its position as a technology leader, pushing the boundaries of chip design and innovation to new heights. In this article, I’ll explain why Intel is the best long-term investment you can make. And why Intel will undoubtedly win in the long run.

They Went Haywire on Investments

Intel is going, simply put, full retard on investments. In 2022, they added $33 billion to the infrastructure production and R&D of semiconductors. They realized that the chip shortage would not be alleviated anytime soon. Chip demand will only rise as more industries, particularly in the developing world, go digital.

With the current tensions between the United States and China over the tiny island of Taiwan, the future of the most advanced manufacturing facility, TSMC, is at great risk. And anyone who knows anything about TSMC knows that they have a foot in both the US and China.

Intel is a 100% US company. With the Chips act that is bound to jumpstart the semiconductor industry in the US, Intel looks to have a very bright future. It’s well known that they have strong US Governmental ties, and are absolutely on their way to getting a large chunk of the US Chips act, which has a total value of 50 Billion Dollars.

Even more, the EU is also investing 43 Billion dollars in the Chips act, to strengthen the production of semiconductors on European soil. I’ll give you one try to guess who is also building chip manufacturing facilities on EU territory. Come on, it’s an easy one — Intel!

Now, you may think about AMD, Nvidia even Apple, and other great “chip” stocks. But guess where all of them are manufacturing their chips? Another guessing game, come on, you can do it. They all manufacture their chips in Taiwan with TSMC. Intel is among the few that manufacture its own chips.

Even if Intel’s technology is not as advanced as TSMC’s, Intel will catch up to them in the near future. That‘s because it’s impossible to produce chips that have transistors under 3 nanometers. The laws of Physics don’t allow it. That means that Intel will build a lot of manufacturing facilities while also progressing with its technological development — catching up to TSMC.

When Intel will reach the 5-nanometer chips production, TSMC and all others will be left in the dust. Intel will design, build, and sell chips, having all of the supply chains covered up, from raw materials to the final product.

When that happens, AMD, Nvidia, Apple, and everyone else who relies on TSMC to build their chips will have to put their tails between their legs and beg Intel to manufacture their chips.

They Went Crazy on AI

Another factor that will make Intel a great winner in the next decade is its heavy investment in AI. Anyone in the business world knows that artificial intelligence (AI) is the future. Any informed person can see that businesses will either embrace AI tools or perish trying to combat them.

Intel bought Movidius in 2016, which is an AI hardware company that builds Vision Chips for the automotive industry. With the help and resources of Intel, their tech is bound to take the market by storm.

They also bought more AI startups, like Granulate, Nervana, Saffron Technology, and many other AI startups. This clearly states the direction in which they are moving.

They will build all of the most promising technologies of the future, from the ground up. They will have the most advanced manufacturing facilities, the most advanced AI chips, and the most advanced minds in the world working on innovative technologies.

They are also working in a field that has the ability to change AI as we know it. This field is called Neuromorphic Computing, and it aims to build artificial brains. Yes, you read it right, inorganic brains that we will be able to place in our devices, maybe even in our future droid assistants. Yes, Intel also has a Neuromorphic Computing division which also has a working neuromorphic chip called Loihi.

Conclusion

With the return of Patrick P. Gelsinger, intel is bound to return to being a technology leader, instead of being a company run by finance guys who only have money on their minds. Intel was at the epicenter of Silicon Valley, and an important player in building the digital world we now have. People seem to forget this, thinking they will have the same trajectory as other big companies had in the past, as they refused to change with the times.

Intel is not like that. They acquire innovative companies, invest in future talent, and have one of the heaviest R&D focus in the world. They are looking at and investing in the future of tech. In my opinion, Intel is the investment opportunity of a lifetime, and a must-buy stock, especially at the current price of 29.24, which is a great discount. Intel is the future of chips, people just don’t know it yet.