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My Take: Is This an Overreaction to Intel's Earnings?

By Jose Najarro – Oct 26, 2021 at 10:00AM

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Intel's stock price dropped over 10% after its earnings report.

Today's video focuses on Intel's (INTC -6.41%) recent earnings and what long-term investors should watch in the months ahead. Here are some highlights from the video. 

  1. In March, Intel announced its four-step strategy for a new era of innovation. During its Q3 earnings call, the CEO reiterated this plan, which focuses on the following: expanding internal and external manufacturing; starting production of chips for other companies and developing a world-class foundry; regaining process leadership; delivering leadership products in every category Intel competes in. 
  2. In the upcoming months, Intel will release new products that many investors and tech enthusiasts are excited about. Intel will be entering the discrete graphics card market with its Alchemist GPU and the accelerator AI market with its Ponte Vecchio GPU. Numerous products like consumer CPUs, data center CPUs, and more are also in Intel's pipeline. 
  3. Intel mentioned to its investors that original equipment manufacturers are focusing on higher-margin items due to component shortages. The component shortage has caused Intel to report a slowdown in its PC-centric business and pushed its stock price down. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of Oct. 22, 2021. The video was published on Oct. 25, 2021.

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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