Intel Stock.. why isn't it going up?
- Thread starter yhelothar
- Start date
Uh, check out recent press releases as well as last quarter earnings, no so hot.
One word: marketshare.
One word: marketshare.
Itll come around, the revenue and profit wont change until at least next quarter.
It wont really hit marketshare for at least 6 months, intel still isnt shipping core 2 duos in a majority.
It wont really hit marketshare for at least 6 months, intel still isnt shipping core 2 duos in a majority.
The increase in Revenue from Core 2 Duo is being offset by the writedowns in inventory of their "old" chips. Plus the uncertainty that Core 2 Duo will be widely upgraded to in the corporate world. my P4 2.6 Ghz is doing just fine. I imagine another year or two before it will need to be replaced.
AnonymouseUser
Diamond Member
- May 14, 2003
- 9,943
- 107
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The only thing propping the share price up lately is the dividend. Now that that is out of the way...
It's the numbers, they did not perform as well in q2 and lowered their forecasts for q3. core2 had a successful launch, people are buying it up, but the problem is they have a bunch of old inventory they have to dump. Plus, they're not done with their efficiency program thing. It's a great time to pick up a few hundred intc shares if you're in for the long term.
They price should go up by q4, q1 07 ....
They price should go up by q4, q1 07 ....
Basically investors want to see how well Intel will do financially. On the product side, Intel is doing the right thing, they have a competitive product that can go head-to-head against AMD, but how does that translate into revenue and profit...that's what investors want to know.
Also, Intel is cumulating a lot of inventories, and they said in the conference call that the inventory level might still go up this quarter.
Despite all that, I think $17 for INTC share is very reasonable, I can't see it go much lower unless something really bad happen.
Also, Intel is cumulating a lot of inventories, and they said in the conference call that the inventory level might still go up this quarter.
Despite all that, I think $17 for INTC share is very reasonable, I can't see it go much lower unless something really bad happen.
AnonymouseUser
Diamond Member
- May 14, 2003
- 9,943
- 107
- 106
Doesn't make sense at all. Dividend normally doesn't prop up the share price, if anything it reduces the worth of the company.
Selling like hotcakes, yes, but still less than 5% of Intel's total production. The other 95% is (now obsolete) Pentium 4 based stuff.
helloooooooo
ever hear 'BUY LOW SELL HIGH'?
well intel is near an all time low.... soo... buy????
ever hear 'BUY LOW SELL HIGH'?
well intel is near an all time low.... soo... buy????
AnonymouseUser
Diamond Member
- May 14, 2003
- 9,943
- 107
- 106
You are right, it doesn't make sense, but there are a lot of investors that chase stocks offering dividends.
Dividends are usually offered by companies to maintain share price when there is little chance of it going up, thus preventing a mass exodus (and drop in share price) when their growth becomes stagnant.
AnonymouseUser
Diamond Member
- May 14, 2003
- 9,943
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The c2d chips seem like they are competitive and a good value, especially for enthusiasts, but it remains to be seen what those will do to the profitability of Intel in the long run. My view is that the stock still has some room to drop further. The outlook Intel gave in their analyst call wasn't very promising.
Core 2 production will hit at most 25% of Intel's total production by the end of 2006 (and that seems to be slipping a bit, I've heard 20% is the real number). Intel is still producing P4 based chips.
Story Here
BoberFett
Lifer
- Oct 9, 1999
- 37,563
- 9
- 81
Stock prices do not necessarily reflect the release of a single product just because it excites a bunch of nerds on the internet. As much as the fanbois around here would attempt to tie market performance with OMGFWTFPWNAGE3DMARKSCORES, it doesn't work that way.
Miramonti
Lifer
- Aug 26, 2000
- 28,651
- 100
- 91
Loss of marketshare momentum is a big factor but I think the biggest weight is the uncertainty of what Dell and AMD have in store. Until that's clear there will be a continued weight on the price imo. It might also present a nice buying opportunity if the dell/amd deal already gets accounted into the stock price before a deal is announced or a deal put off, which then the stock price could go up (common 'rumor vs. news' dynamic).
PingSpike
Lifer
- Feb 25, 2004
- 21,733
- 564
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Yep. I won't pretend to understand all thats involved in the chip making business, but I'd imagine it will take them awhile to entirely switch their lineup. Those fabs are all setup for P4 stuff still. Even if intel could shift gears instantly they probably still have obligations to companies that ordered the old stuff.
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