Buy Intel Stock Or No

last updated on

Buy Intel Stock Or No

Should You Still Buy Intel Stock?

Intel established a Foundry back in 2021. At that time, it was a bold move. The company's plan was to manufacture chips for 3rd party customers.

The Foundry didn't gain much traction and also led to the departure of the CEO at that time. But around a year ago, things changed when the US government announced $8.9 billion worth of funding. The funding was to support a domestic supply chain of semiconductors.

Intel Stock Price Is Up By 453%

The government support really helped Intel, and this led to a 453% increase in Intel's stock price. Now, the question is whether more upside is ahead for Intel stock or it is time to sell.

There are reports that Intel is in talks with Alphabet and Amazon. The company could provide chip packaging services to these clients for the AI processors. The company has also announced an early deal with Apple for producing chips.

But we must understand that these agreements and discussions are still in the early stages. So, they are not really sealed orders with confirmed revenue.

So, if these deals fall through, the only viable choice for the Intel stock price will be downside. As things stand right now, there's a real risk that Intel stock could crash if these deals don't become a reality.

Also, Intel has yet to prove that it can deliver the products to customers. TSMC is a big player that is already making chips for its clients. On the contrary, Intel has yet to prove itself to the customers.

Considering everything, it is a good time to sell the Intel stock and secure the profits. For someone thinking about taking an entry into Intel stock, it is better to look elsewhere. The upside looks limited at this stage, and the risks are quite high.

Also, most of the future growth is now already priced into Intel's stock price. Last but not least, the political landscape could change in the USA, and that could change the government's funding programs.

Trending Stories