Intel’s long-term outlook still bright

Article Excerpt

Intel continues to innovate in areas where it sees strong future potential growth. The computer chip maker is now focused on its more-promising businesses—mainly chips for datacentres and artificial intelligence applications. In the process, it has decided to wind down its 5G chip operations and has cuts its 2019 growth forecast. The stock is down 27% after rising to nearly $60 in April 2019. The drop reflects concerns that the escalating trade war between the U.S. and China could impact global economic growth. That would hurt sales of computer chips, which tend to rise and fall with the overall economy. However, we feel Intel’s new focus and strategy will pay off, and let it keep raising its dividend. INTEL CORP. $44 (Nasdaq symbol INTC; Conservative Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.5 billion; Market cap: $198.0 billion; Dividend yield: 2.9%; Dividend Sustainability Rating: Above Average; www.intel.com) is the world’s leading maker of computer chips. Computer makers in China accounted for 27% of Intel’s…