Intel today
(As of December 12, 2024 ET)
- 52 week range
- US$18.51
▼
$51.28
- Dividend yield
- 2.41%
- Target price
- $30.04
More and more market participants are becoming aware of the quantum computing trends emerging in the technology sector right now. What was once a hot topic in artificial intelligence has now taken the industry to the next level. The opportunities and potential profits are still unknown as the technology is still new.
However, one thing is for sure: the stock prices of most (if not all) companies involved in supporting the future of this technology are likely to rise significantly from the level at which they trade today. However, not all stocks in this niche are created equal, as companies such as Nvidia company. NASDAQ: NVDA are already trading at high premiums compared to their historical averages, so much of the upside that may yet arise from the support of quantum computing may already be priced into the stock today.
Unlike Nvidia, other companies in the market are offering a smarter entry into the future of quantum computing, e.g. Alphabet Inc. NASDAQ: GOOGLE or even Advanced Micro Devices Inc. NASDAQ: AMDwhich offer much more attractive valuations compared to Nivida and other leaders. However, none of these stocks offer the same value or catalysts that can be found in stocks Intel Company NASDAQ: INTK today, making it the best buy.
Intel Stock’s Impact on Quantum Computing Could Boost It
Intel is known for having one of the leading extreme ultraviolet (EUV) lithography technologies for chip manufacturing. These technologies will become even more important as the new United States administration takes office and implements announced additional restrictions on the technologies.
These restrictions will limit the supply of chips and semiconductors from China and Taiwan, making the world more dependent on American-made chips. This trend will definitely help Intel as it builds factories in Arizona and Ohio with government funding, given how important the company is to the supply chain.
When it comes to quantum computing, Intel has developed Tunnel Falls chips along with another product line called Tangle Lake. While Google pre-announced its first quantum computer, Willow, Intel will be tasked with supplying some of the chips needed to continue producing such computers.
As a result of such trends, Intel has seen signs of potential institutional accumulation, as indicated by the stock’s volume profile showing most of the volume over the past 12 months concentrated in the $22 to $22.50 per share range.
Beyond the volume numbers, investors can check Intel’s institutional ownership reports, which show that State Street holders have increased their positions in Intel shares by as much as 2.8% as of November 2024, bringing their net assets to a high of $4 .6 billion or 4.6%. ownership in the company.
Wall Street Expects Intel Stock to Rally Driven by Key Catalysts and Strategic Developments
Intel stock forecast today
$30.04
Growth potential 45.04%Reduce
Based on ratings from 31 analysts
| High forecast | $62.00 |
|---|---|
| Average forecast | $30.04 |
| Low forecast | $17.00 |
Intel stock forecast details
From these recent institutional positions or Intel stock accumulations, Wall Street analysts may have come up with a few reasonable catalysts that could explain what’s going on behind the scenes here. One driver is already obvious: Chinese export restrictions will prioritize American chips in markets, but that’s not all.
Intel CEO, or former CEO Pat Gelsinger, recently stepped down from his position and resigned abruptly. While this may have been a bearish moment for the stock in recent weeks, the uncertainty is likely already priced in, given that Intel shares are now trading at just 39% of their 52-week highs.
What’s more, when a new CEO is inevitably announced, that certainty will likely lead to a higher stock and a fairer valuation. What’s more, there could be a catalyst that allows investors to grab a higher price ahead of the CEO announcement.
Another industry giant wants to buy Intel. Qualcomm Inc. NASDAQ:QCOM approached Intel over the past two quarters with a takeover offer. Given how Intel trades today, acquiring the company’s expected future earnings at this price would be a no-brainer.
According to Wall Street analysts, earnings are expected to range from a net loss per share of $0.46 today to net earnings per share (EPS) of $0.29 in 12 months. This type of swing would eventually justify the current consensus price of $30 per share that analysts have set for Intel stock, if not more.
With 50% upside potential behind it, Intel stock still has a forward P/E ratio of 21.4x, which is very close to Nvidia, Advance Micro Devices and others. What the market is trying to say is that they are willing to pay the same premium for Intel as its competitors do today, despite the stock trading so cheaply.
There’s always a reason behind this behavior, and linking it to recent gains could lead investors to believe that Intel stock could be the best buy in the future of quantum computing.
You might want to hear this before you consider Intel.
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