After the disaster that was Intel (INTC) yesterday, there’s actually some good news coming out. And while the market is still a bit skeptical—Intel shares were down fractionally in Tuesday afternoon’s trading—there are some signs of life in the beleaguered chip stock. We got a very positive look at Intel earlier today, and it turns out those sentiments are echoed elsewhere. Five-star financial blogger Dani Cook recently took a look at Intel and discovered there are still “compelling reason(s) to invest.”
The first of these, naturally, is Intel’s chip foundry ambitions. Intel has been working frantically to get to the point where it can produce most of its own chips and those of other companies.
Such a move would give Intel a major new advantage in the market. But there’s also the matter of Intel’s current valuation. The recent massive sell-off may have opened up a big new opportunity, and that’s a point that can’t be ignored readily. Throw in the connections it’s built with the U.S. government, and reports of Intel’s demise may be premature at best.
New Warranty Details
While Intel’s future might be brighter than expected, it’s also working toward winning back customer trust and ensuring loyalty. New details have emerged about Intel warranties on those 13th and 14th-generation chips that were causing issues. In fact, the warranty on such chips, including boxed, tray, and OEM/system integrator processors, has been extended from three years to five.
Is Intel a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 23 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 42.34% loss in its share price over the past year, the average INTC price target of $29.56 per share implies 47.84% upside potential.
