Current Report: Intel (INTC)

Intel computer processor in selective color photography

Photo by Slejven Djurakovic on Unsplash

Intel Corp, ticker INTC, a large-cap Semiconductors company in the technology business sector, is the fifth of five technology candidates vying for the last slot in my Viital folio. This is my second report on INTC. I did discuss INTC previously back on August 10th.

Intel is the world's largest logic chipmaker. It designs and manufactures microprocessors for the global personal computer and data center markets.

Intel pioneered the x86 architecture for microprocessors. It was the prime proponent of Moore's law for advances in semiconductor manufacturing, though the firm has recently faced manufacturing delays.

While Intel's server processor business has benefited from the shift to the cloud, the firm has also been expanding into new adjacencies as the personal computer market has stagnated. These include areas such as the Internet of Things, artificial intelligence, and automotive.

Intel has been active on the merger and acquisitions front, acquiring Altera, Mobileye, and Habana Labs in order to bolster these efforts in non-PC arenas.

Intel Corporation has a strategic partnership with MILA to develop and apply advances in artificial intelligence methods for enhancing the search in the arena of medicine.

The company was incorporated in 1968 and is headquartered in Santa Clara, California.

Three key data points gauge Intel Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

 

INTC Price

Intel’s price per share was $25.60 at Todays market close.  Intel’s share price fell by $27.11 or about 50% in the past year.

If Intel’s stock trades in the range of $20.00 to $40.00 this next year, its recent $26.38 share price might reach $35.00 by next year. That upside increase of $8.62 is $4.68 under the valuation projected by 31 analysts tracking INTC for brokerages.

 

INTC Dividends

Intel’s most recently declared quarterly dividend of $0.365 per share makes an annual dividend of $1.46 and casts a yield of 5.53%.

 

INTC Returns

Adding the $1.46 INTC dividend to my one-year price upside estimate of $8.62 shows a $10.08 potential gross gain.

At today’s $26.38 closing price, a little over $1000 would buy 38 shares.

A $10 broker fee (if charged) paid half at purchase and half at sale and might cost us $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated $9.08 gross gain per share results in a net gain of $8.82 X 38 shares = $335.16 for a 33.5% net gain including a 5.53% annual yield.

In a year our $1K investment in shares of Intel Corporation   could generate $55.30 in cash dividends. Of course, a single share of INTC stock at yesterday's $26.38 price is less than half the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy INTC shares based on their dividends for the year 2022. The dividend from $1K invested is 2.09 times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Intel Corporation. Only time and money invested in this stock will determine its market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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