Based on a current enterprise value of $234.8 billion, it has an FCF yield of 9.3%.
#Intel play logo free#
In the trailing 12 months ending the second quarter, Intel had free cash flow of $21.9 billion. By applying an 8.5% discount rate, that gives you a 2020 share price target of more than $60. So far, that hasn’t happened, but that doesn’t mean investors won’t eventually recognize this achievement.įurther, as my technologically-savvy colleague points out, Intel should generate earnings of $6.50 a share by 2025. As long as its data center business continues to do well, I argued, its stock should move higher over the long haul. To counter the perception Intel is falling behind, Lango points out that the company’s Data Center Group saw sales grow 43% in the second quarter, a point I alluded to in my February article. By that time, AMD and others will be well past 7-nanometer chips, and will likely have moved onto 3-nanometer production.” Worse yet, management has consistently delayed the launch of Intel’s own line of 7-nanometer chips, with the most recent delay pushing back 7-nanometer chip production all the way to late 2022 ,” Lango wrote on Aug. “ Specifically, while many peers like direct competitor Advanced Micro Devices (NASDAQ: AMD ) are pioneering a new era of smaller, faster 7-nanometer chips, Intel is still stuck ramping production of its 10-nanometer line. That’s despite my colleague pointing out that Intel is losing the race for smaller, faster chips. InvestorPlace’s Luke Lango recently discussed why investors should buy Intel stock before it rebounds to $60. With the correction of its stock since the middle of July, it now has to double in price to hit $100, something that’s looking exceedingly difficult.īut it could get back to $60 by the end of 2020, precisely where it started the year. For me, Intel’s a good buy despite its gains over the past year. While it won’t hit $100 in 2020, its growth-at-a-reasonable-price (GARP) valuation suggests that it could triple digits sometime in 2021. In my February article about Intel, I concluded as follows:Īs it continues to grow its data-related businesses, I see Intel stock continuing to move higher. In mid-February, Intel was trading a couple of bucks below its 52-week high. Can Intel Stock Hit 52-Week High By the End of 2020? For those who care, INTU is up 13% over the same period, but I digress. Seriously, though, since I last wrote about Intel, Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) have seen their share prices increase by 48% and 79%, respectively. 18 to be exact - I had to think for a moment about whether my editors were asking me to write about the chipmaker or Intuit (NASDAQ: INTU), the maker of TurboTax and QuickBooks. It’s been so long since I last wrote about Intel - Feb. Down 17% year to date, it’s seriously trailing the sector return of 33.8%. Only first-rate products can get INTC back on track. I’m being facetious about the logo turning around the stock’s fortunes.
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