7 Reasons to Buy Intel Shares Ahead of Its Innovation Week

September 19, 2023

While Intel Corporation (NASDAQ: INTC) struggled to attract investors to its stock in the early 2020s, the tech giant is now among the top gainers so far in 2023.

Source: Bloomberg, ProsperUs

In fact, the return of Pat Gelsinger to Intel (as CEO) has helped the company to rediscover its mojo, as Intel stands out as a company that’s continuously pushing the boundaries, making it a great example of how innovation can drive growth.

This week, Intel will organise its Innovation Week, a two-day conference that will take place in San Jose, California, from 19 September 2023 to 20 September 2023.

With this in mind, here are seven reasons why tech investors should consider adding Intel to their portfolio ahead of Innovation Week.

1. Poised to take the lead in AI innovations

Intel is making waves in the artificial intelligence (AI) world with its platform called Gaudi2.

To put it simply, think of this as a super-efficient tool that can process vast amounts of data swiftly.

Performance results published recently showed Gaudi2 outperforms NVIDIA Corporation’s (NASDAQ: NVDA) A100 Compute GPU.

With this, Intel is looking to overtake its competitor with frequent updates and plans for even more advanced tools in the future.

2. Innovations in packaging

One of Intel’s big wins is its new approach to packing more computing power into tiny spaces.

Imagine trying to fit more and more stuff into a small box – that is what Intel is doing but for computers.

With the industry growing rapidly and Intel setting up more facilities worldwide, like in Malaysia, it’s poised to be at the forefront of innovation.

3. Focusing on developers

Intel’s tools, specifically OneAPI and the Intel Developer Cloud, are made to help those creating software, indicating that Intel is invested in the future of technology development.

4. Advanced precision tools

Intel uses a technique called EUV lithography, which is like a super-fine paintbrush for computer chips.

This, combined with its other tech innovations, means the company is looking to remain top-tier in computer chip quality and performance.

5. Strong share price performance

Intel’s recent market performance so far in 2023, with a 46.2% total return (as of 18 September 2023), is noteworthy.

This number beats the S&P 500 Index’s total return of 17.3%, the NASDAQ Composite Index’s total return of 31.8% and the Bloomberg World Large & Mid Cap Price Return Index’s total return of 14.1%.

Source: Bloomberg, ProsperUs

This indicates market confidence in Intel’s robust position and promising future.

6. The future is On-Device AI

With more and more devices using AI directly, like how Microsoft Corporation’s (NASDAQ: MSFT) Copilot operates, Intel’s involvement in this area could be a big growth point in the future.

7. Expanding worldwide and building partnerships

Intel is not just growing in one area as it is expanding operations globally, especially in places like Asia.

This puts Intel in a strong position to benefit from the rising geopolitical tensions.

On top of that, Intel is also teaming up with big companies like Amazon.com Inc (NASDAQ: AMZN) and Cisco Systems, Inc (NASDAQ: CSCO), showing the firm’s willingness to innovate to build its foundry business.

The future looks bright with Intel

Intel’s journey, full of innovative tech and a forward-thinking approach, makes it an interesting choice for investors.

As the tech world keeps changing, Intel’s commitment to staying ahead and evolving shows its potential for a strong future.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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