Intel Corp. (NASDAQ: INTC) is one of the world’s largest semiconductor companies and a major supplier to PC manufacturers, data centers, and industrial computing market segments. Facing heightened competition from rival Advanced Micro Devices Inc. (NASDAQ: AMD), Intel stock has underperformed in recent months. The company is now building capacity to better compete in the chip market, and its fiscal performance could help to raise the stock value.
The company’s new CEO, Pat Gelsinger, announced on Tuesday that the company would be spending at least $20 billion on factory upgrades and expansion later this year to improve its capacity and compete with rivals. Investors were pleased with the news. This spending will eclipse the $14.3 billion that the company spent on capital expenditure in 2020.
Intel also offered positive guidance for the 2021 fiscal year on a recent call with investors. The company expects to generate $76.5 billion in revenue with earnings per share of $4.55. Analysts are confident that the company will overperform, with an average high-end expectation of $76.64 billion in revenue and earnings per share of $4.78.
The company’s focus on refreshing and expanding its manufacturing capabilities, combined with a strong bottom line, makes this one of the best tech stocks to watch in the months moving forward.
- 1 Year Price Growth: 15%
- YTD Price Growth: 42%
- 3 Month Price Growth: 49%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.