New strategy will pay off for Intel

Article Excerpt

Intel, unlike rivals Advanced Micro Devices and Nvidia, prefers to make its own computer chips instead of outsourcing its designs to other manufacturers. In fact, new CEO Pat Gelsinger recently announced a new strategy under which Intel will increase its ability to make chips for other companies. That should appeal to computer chip buyers worried about an over-reliance on Taiwan’s chipmakers. Even though the pandemic spurred strong demand for personal computers, Intel continues to diversify into new growth areas such as chips for self-driving cars, cloud computing and artificial intelligence. These moves will help Intel maintain its leading share of the increasingly vital chip market and push the stock higher over the next few years. INTEL CORP. $54 is a buy. The company (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.1 billion; Market cap: $221.4 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.intel.com) is the world’s leading maker of computer chips: its products…