In this video, I will be talking about Intel's (INTC -0.75%) new CPU, Alder Lake, and how it is pushing AMD (AMD -3.91%) to do things it wouldn't want to do. With the current market and economic situation, it might actually be smart to have a company like Intel in your portfolio. You can find the video below, but here are some of the highlights.
- Intel is down 12% since it reported earnings but right now with what's going on in the market and the economy as a whole, it might not be such a bad idea to have a company like Intel in your portfolio. It pays a 2.8% dividend yield and is generating $9.9 billion in cash from operations.
- Intel is planning on taking back its lost market share with the launch of Alder Lake and future GPU products. With regards to Alder Lake, Intel has finally moved on from the 14 nm chips to 10 nm. The new Alder Lake CPUs are compatible with DDR5 RAM whereas the AMD counterpart is not.
- To counter this, AMD has already cut the prices of some of its CPUs. The Ryzen 5800X, for example, has been reduced from $449 to $299, which has caused it to sell out very quickly.
- AMD is expected to launch the Ryzen Zen 3 CPU early next year but only plans to unveil the Zen 4 later in 2022, and that one will support DDR5.
- The beauty of this market is that there's so much demand that both Intel and AMD will thrive. But if we compare both companies' valuations right now, you would say Intel is very cheap and has growth potential if the comeback story is on with the new CPUs, GPUs, and IDM 2.0.
- It's crucial for the Western world to have a player like Intel located outside Asia. Intel has already broken ground on two new fabs, three months ahead of schedule.
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*Stock prices used were the closing prices of Nov. 22, 2021. The video was published on Nov. 23, 2021.