Intel (NASDAQ:INTC) investors had little reason to celebrate as 2024 came to a close. The struggling chip maker lost 60% of its value over the course of the year – a blow made even more painful by the double- and triple-digit gains enjoyed by many of Intel’s peers.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
The company has recently been in the spotlight, with rumors swirling about a potential acquisition led by none other than Elon Musk. While the speculation briefly lifted Intel’s share price by high single digits, the stock has largely traded sideways since.
Yet, investor Paul Franke sees glimmers of hope on the horizon. With Q4 2024 earnings set to be revealed on January 30, Franke highlights a number of developments that suggest this could be the moment to jump in.
“If you want a deep-value Big Tech name to add to your portfolio, Intel may be the only game in town,” the 5-star investor asserts.
Franke points to Intel’s valuation, which, by several measures, has fallen to its lowest levels since the 1990 recession. Compared to other semiconductor giants, the investor notes that Intel is trading at a 60% to 70% discount.
“INTC is now the least expensive of the largest capitalization semiconductor businesses for new investment, when looking at a projected refresh in operations during 2025-26,” Franke points out.
Still, Franke emphasizes that valuation alone doesn’t seal the deal. He points to both technical and broader developments that signal Intel could be on the rise in the months ahead. For one, over the last six months, Intel has seen weekly buying trends outpace selling activity – a dynamic Franke interprets as a sign of “better times ahead.”
Moreover, Franke highlights a range of catalysts on the horizon that could propel the stock: “A successful restructuring, potential takeover offers, and asset spin-offs could drive significant returns for investors in 2025.”
The investor also notes that Republican leadership in Washington – which tends to apply less scrutiny to large mergers – makes any potential acquisition more likely to proceed.
Believing that “2025 could be a solid year,” Franke assigns a Buy rating to Intel shares. (To watch Franke’s track record, click here)
On the other hand, Wall Street is not quite ready to take a flyer on Intel. The stock carries a consensus Hold (i.e., Neutral) rating based on 22 Holds, 4 Sells, and a single Buy recommendation. Even so, the 12-month average price target of $23.87 implies a potential upside of ~15%. (See INTC stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
