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When Uncle Sam becomes your business partner, good things tend to happen. That’s exactly what we saw in Intel Corp.’s (INTC) first report with Washington riding shotgun, writes Thomas Hayes, editor of HedgeFundTips.

Revenue came in at $13.6 billion, up 6% sequentially and 3% year-over-year. That beat Street estimates of $13.1 billion and topped management’s prior guidance by about $600 million. Earnings per share of $0.23 came in well ahead of consensus at $0.01 and management’s guidance for breakeven results.
 

Altogether, the quarter marked Intel’s fourth consecutive beat on guidance and its first profit after six straight losses, the company’s longest losing streak in 35 years. This was a stock you couldn’t give away at $18 or $19 a share, with investors blinded by the “un-investable” label and looking at me like I had two heads for pitching the name.

Fast forward to today, and Intel now sits second only to Advanced Micro Devices Inc. (AMD) as the best-performing “AI” name year-to-date, outperforming every Magnificent Seven stock that investors continue to clamor for.

Now that the stock has more than doubled from the lows, analysts have been forced to hike price targets from $20 to $40 overnight, and suddenly everyone is interested. That wasn’t on anyone’s bingo card except for the loyal listeners of Hedge Fund Tips.

My recommended action would be to consider purchasing shares of Intel.

About the Author

Thomas J. Hayes is the founder, chairman, and managing member of Great Hill Capital, LLC (a long/short equity manager based in New York City). Before starting his own firm, Mr. Hayes worked with Cornwall Capital, LP (one of the firms featured in The Big Short book and movie).

On a weekly basis, he publishes his timely stock market commentary, Hedge Fund Tips with Tom Hayes videocast and podcast. He has a wide following in the investment management, hedge fund, and media community.

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