Intel versus Advanced Micro Devices and Nvidia

Both analysts and Intel’s management expect to see earnings and cash flows, especially free cash flow, fall precipitously over the next few years. However, the primary reason is that management has decided to take aggressive action to catapult long-term future growth. Consequently, Intel management announced that capital expenditures will increase significantly, close to double, in 2022 to position for future growth. This will have an immediate negative impact on free cash flow. Management is very confident that this aggressive stance will bear long-term fruit. Leading analysts – of which there are 41 reporting to FactSet – are not as confident. With this video, I provide a comprehensive look at Intel with a focus on fundamentals, primarily future expectations over the next few years. As an additional bonus, I will take a quick look at Advanced Micro Devices and Nvidia. Although Intel is expected to have weak cash flows and earnings over the next few years, Advanced Micro and Nvidia appear overvalued at current levels.

In the video, I will go over Intel (INTC), Advanced Micro Devices (AMD), and Nvidia (NVDA).

Video Length: 00:22:30