Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, March 26, 2021

Article Excerpt

INTEL CORP., $64.87, Nasdaq symbol INTC, is a buy. The company is the world’s leading maker of computer chips: its products power 90% of all personal computers and more than 80% of all datacentres. This week, Intel’s new CEO, Pat Gelsinger, announced the company will build two new chipmaking facilities in Arizona at a cost of $20 billion. That equal to 8% of its market cap of $263.6 billion. The new plants should begin operating in 2023 and will let Intel make chips for other companies. Those include processors based on its proprietary x86 architecture. That should appeal to customers concerned over the risk of relying on chipmakers in Taiwan. At the same time, Intel aims to cut the time needed to develop new chips in half to about one year. It also plans to outsource some of its production to smaller chipmakers. Due to the previously announced sale of its flash memory business, Intel’s earnings will likely fall 14% to $4.55 a share in…