Insider Insights: Does Intel CEO’s Recent INTC Buy Signal Strength Ahead?

Stocks to buy

What will it take to bring Intel (NASDAQ:INTC) back into the market’s favor? It would certainly build confidence if the company’s chief executive is also a shareholder. Even beyond that, the INTC stock outlook indicates improvement, albeit not perfection, so a small-sized allocation isn’t a terrible idea.

We’ve caught wind of discussion about whether Intel is the “next” Nvidia (NASDAQ:NVDA). There’s no need to obsess over comparisons like this, though. Intel can make strides in 2024 even if it’s not in the same league as a juggernaut like Nvidia. All in all, Intel stock probably shouldn’t be everyone’s first-choice chip stock, but it still earns a respectable “B” grade.

How Much INTC Stock Did the CEO Buy?

Some investors were disappointed with Intel after the company released its current-quarter guidance. Wall Street called for revenue of $14.2 billion, but Intel’s guidance range of $12.2 billion to $13.2 billion fell short of the consensus estimate.

Yet, CEO Pat Gelsinger remains confident in Intel’s growth prospects. In fact, Gelsinger reportedly bought 2,800 INTC stock shares through a trust for $119,700 on Feb. 1.

Perhaps, Gelsinger envisions Intel making strides in the highly competitive AI-chip market. Currently, some analysts remain unconvinced. For example, Oppenheimer analyst Rick Schafer feels that Intel’s AI offering is still in “prove-it” mode, while Needham analyst Hans Mosesmann warned, “AI everywhere seems like everywhere except Intel.”

But at least we can say that Gelsinger is putting his money where his mouth is. There are no guarantees, but it’s at least possible that Intel will show progress against its rivals in advancing the company’s AI-enabled chips.

AI-PC Resurgence Could Help Intel

In early 2024, we can already see Intel facing challenges. Frustratingly, Intel is delaying the construction of its Ohio-based chip-manufacturing facilities. Whereas Intel’s previous timetable specified late 2025, now it appears that the construction won’t be completed until late 2026.

Not all the news is negative, however. Research firm Gartner envisions a potential catalyst for Intel as rapid AI personal computer industry growth.

Amazingly, Gartner estimates that smartphone manufacturers will ship out 240 million generative-AI smartphones in 2024. The research firm expects vendors to ship out 54.5 million AI-enabled PCs this year.

This phenomenon could alter the PC landscape and revitalize the industry. Gartner Senior Director Analyst Ranjit Atwal explained, “The rapid adoption of on-device GenAI capabilities and AI processors will eventually become a standard requirement for technology vendors.”

This presents Intel with an opportunity to capitalize on a burgeoning niche market. Prospective investors should keep tabs on Intel for signs of progress in advancing and commercializing AI-PC chips. The company doesn’t need to be the “next Nvidia,” but Intel can at least capture market share wherever it’s possible.

INTC Stock Outlook: Look for Improvement, Not Perfection

Our INTC stock outlook doesn’t call for the same magnitude of gains that you should expect from a juggernaut like Nvidia. Investors should have realistic expectations and just look for signs of improvement with Intel.

For what it’s worth, Intel’s chief executive is also a shareholder. Plus, if there’s a revival in the PC market because of the AI-PC trend, Intel may capture some market share. Therefore, while it doesn’t deserve the same confidence level as Nvidia stock, we’re willing to give Intel stock a “B” grade.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Articles You May Like

Crypto Carnage: Why Robinhood Stock Is Headed for a Massive Plunge
3 Warren Buffett Stocks Worth a Top Spot on Your April Buy List 
Biden vs. Dimon on LNG: 3 Natural Gas Stocks to Sell on Export Turmoil
3 Tech Stocks to Turn $10,000 Into $1 Million: April 2024
3 Dividend Aristocrats to Buy if Interest Rates Spike to 8%