Topic: How To Invest

Dividend Advisor Hotline – Friday, August 9, 2024

Article Excerpt

INTEL CORP., $19.71, Nasdaq symbol INTC, remains a buy for patient investors. The company is the world’s leading maker of computer chips: its products power 65% of all personal computers and 80% of all datacentres. The company announced that it would cut 15% of its workforce due to slowing demand for chips that power datacentres. It will also suspend its $0.125-a-share quarterly dividend (the annual rate of $0.50 yields 2.5%) and cut its capital spending. These moves should save it $10 billion in 2025. Meantime, in the second quarter of 2024, revenue fell 0.9%, to $12.83 billion from $12.95 billion a year earlier. That missed the consensus forecast of $12.94 billion. That revenue decline was mainly due to lower sales of traditional chips to operator of datacentres as they invest heavily in other chips needed to power artificial intelligence (AI) applications. If you exclude unusual items, earnings fell 84.6%, to $0.02 a share (or a total of $83 million) from $0.13 a share (or $547…