$INTC Intel Falling Knife
Intel was back! Back to the glory days before the dot come bubble burst. Intel was trading over $64 in March 2021 mainly due to the demand pull from COVID-19. With everyone locked down at home, consumers were buying computers like that would be the new normal.
Flash forward to today, and like most companies ($PTON, $ETSY, $DASH, etc.) who experienced the COVID-19 demand-pull, it was not the new normal for Intel.
When I bought Intel's stock in March 2022 at $46 a share I thought I was getting a bargain. Intel looked cheap on multiple different metrics and had a substantial dividend.
Yesterday, Intel reported earnings and it was a disaster. Revenue is slowing across the board, and it looks like $AMD Advanced Micro Devices is taking business away from Intel at a fast rate.
Based on all of this information, it would probably be a wise move to cut my lost and sell $INTC today. BUT I am not going to for one specific reason. Government stimulus coming for Intel and other chipmakers who are producing in the United States.
Intel is opening its brand new factory in Ohio soon, and I can guarantee they will be receiving a large portion of the government stimulus for chipmakers in 2023.
Is this a good reason to hold onto $INTC? Probably not. Competition taking business away is never a great sign and this could be a falling knife.
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