INTC: Might not be your first pick but it’ll be Biden’s…

The talk of the town lately has been all about the semiconductor shortages globally for the foreseeable future and how this is becoming a national security risk. Enter the Biden administration… Ok so “help” is on the way. There are many semiconductor manufacturers to choose from and I don’t think you can really go wrong with any. Focusing on the American options where there is imminent action in the form of some favourable regulations and/or stimulus coming via executive order(s), companies include ADI, AMAT, TXN, AMD, NVDA, etc. look to benefit. I’d admit companies like AMD and Nvidia are flourishing vs. Intel and it’s really thanks to their R&D engineering-first leadership teams. Intel has missed a step here and isn’t the dominant player it used to be. That being said, it does take on the role of designing AND manufacturing chips when most companies do one or the other. From a national security perspective, you’d be looking for companies that are more vertically integrated within the US like Intel. Additionally, if I’m looking for a steady handed value pick, Intel fits the bill at ~15.5 P/E in an industry bloated at ~38 P/E… If I’ve learned anything about how the US distributes stimulus, it’s that they tend to throw dying behemoths a bone. I’m waiting for this sleeping giant to wake up and start competing globally again with more production volumes and stronger profit margins… (a little gov’t doesn’t hurt either) (Bloomberg) -- The Biden administration is working to address the global semiconductor shortage that has caused production halts in U.S. industries including autos, White House Press Secretary Jen Psaki said. Read more at: https://www.bloombergquint.com/global-economics/biden-team-pledges-aggressive-steps-to-address-chip-shortage

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INTC: Might not be your first pick but it’ll be Biden’s…

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The talk of the town lately has been all about the semiconductor shortages globally for the foreseeable future and how this is becoming a national security risk. Enter the Biden administration…

Ok so “help” is on the way. There are many semiconductor manufacturers to choose from and I don’t think you can really go wrong with any. Focusing on the American options where there is imminent action in the form of some favourable regulations and/or stimulus coming via executive order(s), companies include ADI, AMAT, TXN, AMD, NVDA, etc. look to benefit. I’d admit companies like AMD and Nvidia are flourishing vs. Intel and it’s really thanks to their R&D engineering-first leadership teams. Intel has missed a step here and isn’t the dominant player it used to be. That being said, it does take on the role of designing AND manufacturing chips when most companies do one or the other. From a national security perspective, you’d be looking for companies that are more vertically integrated within the US like Intel. Additionally, if I’m looking for a steady handed value pick, Intel fits the bill at ~15.5 P/E in an industry bloated at ~38 P/E… If I’ve learned anything about how the US distributes stimulus, it’s that they tend to throw dying behemoths a bone. I’m waiting for this sleeping giant to wake up and start competing globally again with more production volumes and stronger profit margins… (a little gov’t doesn’t hurt either)

 

(Bloomberg) -- The Biden administration is working to address the global semiconductor shortage that has caused production halts in U.S. industries including autos, White House Press Secretary Jen Psaki said.

Read more at: https://www.bloombergquint.com/global-economics/biden-team-pledges-aggressive-steps-to-address-chip-shortage

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68.03

Target Price

8/ 10

Confidence

1-3 Years

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