Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 10, 2024

Article Excerpt

INTEL CORP., $29.85, Nasdaq symbol INTC, remains a buy for long-term gains. 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 stock dropped 4% this week after the U.S. government revoked the company’s licence to sell certain chips to customers in China, including computer and smartphone maker Huawei Technologies Co. In 2023, China accounted for 27% of Intel’s total revenue. As well, 6% of its revenue came from products subject to U.S. government export control authorizations. As a result of this action, Intel now expects its revenue for the second quarter of 2024 will fall below the midpoint of its original forecast range of $12.5 billion to $13.5 billion. However, the company should benefit from its new strategic plan to improve its technical expertise and expand its ability to make chips for other companies. The plan mainly involves building new chipmaking plants in the U.S. and Europe. In all, Intel…