Take the long view

Article Excerpt

INTEL CORP. $48 is still a buy. The computer chipmaker (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.1 billion; Market cap: $196.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.intel.com) reported that its revenue in the third quarter of 2021 rose 4.7%, to $19.2 billion from $18.3 billion a year earlier. Stronger demand for power datacentre chips offset slowing sales of personal computers due to shortages of various components. Excluding one-time items, Intel’s earnings jumped 53.9%, to $7.0 billion from $4.5 billion. Per-share earnings rose 58.3%, to $1.71 from $1.08, on fewer shares outstanding. However, the stock fell 10% after Intel warned that its new plan to expand its ability to make chips for other companies will slow its short-term earnings growth. Under that plan, Intel will build two new facilities in Arizona at a cost of $20 billion. The new plants should begin operating in 2023. The company will also spend $3.5 billion to expand capacity…