Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, January 8, 2021

Article Excerpt

INTEL CORP., $51.65, Nasdaq symbol INTC, is a buy. The company is the world’s leading maker of computer chips: its products power 90% of all personal computers and more than 80% of all datacentres. Activist investor Daniel Loeb, through his Third Point hedge fund, now owns about $1 billion of Intel’s shares. That’s less than 1% of the company’s $211.7 billion market cap (the total value of all outstanding shares). The activist wants Intel to explore several ways to boost shareholder value. Those include separating its chip design business from its semiconductor making business. Those manufacturing operations have struggled lately with delays in making Intel’s next generation 7-nanometer chips. Outsourcing more of its manufacturing would help the company cut costs; other firms already make about 20% of its chips. Loeb also wants Intel to consider selling some recent acquisitions that have failed to boost its share price. Those include Altera, which makes programmable chips, and Mobileye, which specializes in chips for self-driving cars. However,…

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