Intel has options to spur your gains

Article Excerpt

Computer chip giant Intel has struggled lately as manufacturing problems have forced it to delay the launch of its next-generation chips. Investors fear that gives its competitors a big advantage. As a result, activist investor Daniel Loeb now wants Intel to consider selling or spinning off some of its operations. That pressure is already paying off—the stock jumped 10% on news that Intel’s former chief technology officer, Pat Gelsinger, will replace Bob Swan as CEO. Mr. Gelsinger’s engineering expertise should help Intel regain its technical edge. INTEL CORP. $59 is a buy. The company (Nasdaq symbol INTC, Manufacturing & Industry sector; Shares outstanding: 4.1 billion; Market cap: $241.9 billion; Dividend yield: 2.3%; Takeover Target Rating: Lowest; www.intel.com) is the world’s leading maker of computer chips: its products power 90% of all personal computers and more than 80% of all datacentres. Despite soaring sales of personal computers as the COVID-19 pandemic forced many people to work from home, Intel’s stock has dropped 3% in the past year. Unlike many…