Is it a good time to by intel shares? yes? no? why?
- Thread starter chiwawa626
- Start date
INTC is not a bargain just yet.
Rebound to $50 is possible but I wouldnt hold my breath.
You'll do better with AMD .Poised to move higher.Strong support at $21.
Rebound to $50 is possible but I wouldnt hold my breath.
You'll do better with AMD .Poised to move higher.Strong support at $21.
Well, I own both, but if you're in to investing short term to make a quick buck, I wouldn't buy either one. On the other hand, if you're looking long term, then both are probably buys. Intel is a bit stronger buy because they are so much more diversified now, and because they are so big (being a part of all three major stock indexes requires a lot of funds to own Intel, ie. funds based on these indices). Long term I look for Intel to move further and further away from a CPU-intensive company towards being more of a specialized fab company + some other areas. I think Intel is going through a transition similar to when they bailed out of the memory industry and started concentrating on CPUs. They won't get out of CPUs entirely, as their server business is growing much bigger, and that's were the CPU earnings are really fat. But Intel is spreading out with things like their StrongARM chips, the new DSP that they will soon release, hosting, networking, and several other lucrative areas. They also have some very important alliances with Cisco and Ericsson that they will build upon.
I'm not as positive longterm with AMD as they don't have much besides CPUs and FLASH, and in FLASH they have so many competitors (Intel, Sandisk, Samina, etc.), that once the shortage of FLASH is caught up with, I think FLASH prices will drop a lot. But FLASH ought to be strong for at least another year.
I'm not as positive longterm with AMD as they don't have much besides CPUs and FLASH, and in FLASH they have so many competitors (Intel, Sandisk, Samina, etc.), that once the shortage of FLASH is caught up with, I think FLASH prices will drop a lot. But FLASH ought to be strong for at least another year.
INTC market cap: $267 billion.
AMD market cap: $7 billion.
Guess which one has more upside potential.
Is Intel really 38 times bigger than AMD ?
Back in the eighties IBM ruled the industry and Intel was nobody.
Then IBM lost its touch and stock has been going down for ten years or so.
Even if Intel does ok its valuation is absurd.
And its not doing ok lately...
PS. I bought AMD today at $22.
AMD market cap: $7 billion.
Guess which one has more upside potential.
Is Intel really 38 times bigger than AMD ?
Back in the eighties IBM ruled the industry and Intel was nobody.
Then IBM lost its touch and stock has been going down for ten years or so.
Even if Intel does ok its valuation is absurd.
And its not doing ok lately...
PS. I bought AMD today at $22.
<< Then IBM lost its touch and stock has been going down for ten years or so. >>
Sorry, that is so wrong it's not even funny. Here's just a 5 yr. chart for starters, and note there has been 2 splits in there ...
IBM Price Chart Link
<< Even if Intel does ok its valuation is absurd. >>
Again, incorrect. Intel's current P/E is about 22, based on YR'00, even less based on YR'01. The commonly agreed upon litmus test is that a stock is fairly valued when it is trading at or near a multiple equal to the % EPS growth forecasted for the next five years, ie. if a stock is pegged for a 15% growth, then a multiple of 15X earnings is "fairly valued". Intel is a little bit below "fair value" at this point, how much just depends on which analyst's sets of forecasted numbers you use. AMD's valuation is an anomaly.
<< And its not doing ok lately... >>
And neither is AMD, MOT, TXN, LSI, TSMC, CHTR, and every other major fab I know of ("fabless" semi companies do not count in this comparison)
IBM reached $44 in 1987. Then it went down and stayed down .
It finally broke above $44 in 1997. Price is split adjusted.
If you are interested in charts go to bigcharts
type IBM, choose 'interactive charts' and change timeframe to 'all data'.
Feel the pain of IBM investors during that time.
Now about P/E. There is a law of big numbers in investing. Larger companies have lower P/E.
because its impossible for them to sustain fast growth.The whole economy grows at 5% or so.
Huge company cannot grow at 20-50% forever ,theres no room in the economy for such growth.
It is possible for AMD to make 7 billion of cumulative profit if it grows fast.
Intel valuation implies 267 billion in profit at some point.
I would rather bet on AMD. Life is short you know...
It finally broke above $44 in 1997. Price is split adjusted.
If you are interested in charts go to bigcharts
type IBM, choose 'interactive charts' and change timeframe to 'all data'.
Feel the pain of IBM investors during that time.
Now about P/E. There is a law of big numbers in investing. Larger companies have lower P/E.
because its impossible for them to sustain fast growth.The whole economy grows at 5% or so.
Huge company cannot grow at 20-50% forever ,theres no room in the economy for such growth.
It is possible for AMD to make 7 billion of cumulative profit if it grows fast.
Intel valuation implies 267 billion in profit at some point.
I would rather bet on AMD. Life is short you know...
I disagree on your definition of a company's valuation. Rather than profits, it's related to capital goods and equipment owned, properties owned, etc. etc. Still though, Intel doesn't have $267B in that regard.
But if you wanna talk really way-overvalued companies, why not take a look at CSCO or JDSU, for starters.
But if you wanna talk really way-overvalued companies, why not take a look at CSCO or JDSU, for starters.
i gotta say go with the intel stock because it is much less likely to fall, as it was already said, if intel loses the cpu battle, it has soooooo many more things that will just cover it up. and i know i would be looking forward to a new processor here and there once intel goes less cpu intensive. just like ibm's 6 ghz pipeline processor which should be fast
Look guys I am a trader ,not investor.
I said already I bought AMD on friday at $22.
I plan to sell it on thursday regardless of price.
The idea is that AMD reports earnings after next wednesday close.
I expect them to beat estimates quite nicely.
And stock might run up before release in anticipation of it.
In case market is not impressed AMD wont be cut in half like others.
Because its very cheap by any measure. So risk is small .
I promise to spend my profits on some expensive P3.
Just to make you feel good.
I said already I bought AMD on friday at $22.
I plan to sell it on thursday regardless of price.
The idea is that AMD reports earnings after next wednesday close.
I expect them to beat estimates quite nicely.
And stock might run up before release in anticipation of it.
In case market is not impressed AMD wont be cut in half like others.
Because its very cheap by any measure. So risk is small .
I promise to spend my profits on some expensive P3.
Just to make you feel good.
This is a funny thread. I'm kinda surprised it hasn't been shut down actaully. I saw one like it and Anand/moderator locked it.
A couple of things should be clear to everyone:
a: the stock market is not a bank, you CAN lose money
b: the greater potential for gain in almost every case, the greater potential for loss
c: the risk involved goes up by tremendous factors when you are just trying to make a quick buck
As to my own subjuctive views on the subject, I bought the following on mon.
40% AMD
25% MSFT
25% AAPL
15% INTC
I don't plan on selling real soon. The analysis between aapl/msft and amd/intc is almost identical. Pick the big one for security, little one for potential. As a rule pick some high risk, some low, and some med. As I look at it, AMD is high, aapl mid, and the other 2 are fairly safe. Again, this is the safest, generally most beneficial form of investing, though certainly not the easiest as you ride out the highs and lows.
gl
A couple of things should be clear to everyone:
a: the stock market is not a bank, you CAN lose money
b: the greater potential for gain in almost every case, the greater potential for loss
c: the risk involved goes up by tremendous factors when you are just trying to make a quick buck
As to my own subjuctive views on the subject, I bought the following on mon.
40% AMD
25% MSFT
25% AAPL
15% INTC
I don't plan on selling real soon. The analysis between aapl/msft and amd/intc is almost identical. Pick the big one for security, little one for potential. As a rule pick some high risk, some low, and some med. As I look at it, AMD is high, aapl mid, and the other 2 are fairly safe. Again, this is the safest, generally most beneficial form of investing, though certainly not the easiest as you ride out the highs and lows.
gl
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 20K
-
Discussion Intel current and future Lakes & Rapids thread- Started by TheF34RChannel
- Replies: 23K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes Discussion Threads
- Started by Tigerick
- Replies: 12K
-
Discussion Speculation: Zen 4 (EPYC 4 "Genoa", Ryzen 7000, etc.)- Started by Vattila
- Replies: 13K
-
Facebook
Twitter