New CEO, New Plans, New Profits: Don’t Miss This Semiconductor Turnaround Story

Gelsinger has also said that the company is planning other expansions in the U.S., Europe, and elsewhere. This is another benefit of the plan.

Whereas most other chip manufacturing companies operate either in China or in Asian countries close to China, Intel is expanding its factories in Europe and the U.S.

That shields it from worries about our over-reliance on semiconductors from Asia and the power that gives China over our supply chain.

With the new cold war against China in full force, this puts Intel in a great position to retake its place as the leading chip designer and maker in the world.

The firm’s recent quarterly earnings were no slouch, either. For the December quarter, Intel beat expectations easily, reporting adjusted per-share earnings of $1.52 and sales of $20 billion.

Wall Street analysts were expecting adjusted per-share earnings of just $1.10 and sales of $17.49 billion.

In fact, despite the huge issues caused by the chip supply shortage, the coronavirus pandemic, and the worldwide problems with shipping, Intel’s quarterly earnings and sales were almost exactly as high as the ones the year before.

To reward investors for sticking with it, Intel also hiked its dividend. The stock now yields about 2.2% a year.

Wall Street is taking notice. Intel is one of the few tech titans that’s currently in an uptrend.

So far this year, the stock is up more than 33%, beating the market by 286%.

Add it all up and you can see that a revamped Intel should continue to hand savvy tech investors strong price appreciation and a dividend to boot.

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William K. 2 months ago Member's comment

One benefit of NOT producing ICs in China is the reduced probability of tampering with the designs and planting assorted malware in the structure. THAT has been a problem with some products coming from China in the recent past. Not publicized but real. And noticed by the defense department as well.

But the role of the CEO is not engineering, it is directing and often Intel has gone in the right direction. So it will probably continue to do that.

Adam Reynolds 2 months ago Member's comment

There's too little regulation in China. It's a wild west where pretty much anything goes... at least until you cause problems for the ruling party.