How to Invest in Intel

The company's business strategy is shifting as the semiconductor space goes through some dramatic changes. However, the new Intel looks just as solid as its old-school incarnation.

Shares of Intel stock

A share of stock is much more than a casino chip. It represents ownership in a company, entitling holders to a portion of its assets, profits, and voting rights. Shareholders use their votes to elect the board of directors and settle other matters of strategy and management.

The total market value of a publicly traded company is known as the market capitalization or market cap. You get it by multiplying the number of shares by the current stock price.

Intel isn't just about chips; it's a symbol of enduring strength in the tech sector. By investing in Intel, you're not just buying a piece of a company. You're becoming part of a legacy that has shaped the digital age.

Getting to know Intel

Intel Corporation stands as a titan in the semiconductor industry, known primarily for microprocessors that power a vast majority of the world's personal computers and many big-iron mainframe server systems. Intel's journey began in 1968; since then, it has evolved into a multifaceted tech giant, delving into areas like data centers, the Internet of Things (IoT), and artificial intelligence (AI).

By the end of 2022, Intel had demonstrated its resilience and adaptability in a rapidly changing tech landscape. Despite facing stiff competition and the challenges of a dynamic market, Intel continued to innovate and maintain a significant presence in the global semiconductor industry. This adaptability and persistence make Intel an intriguing option for investors looking to tap into the tech sector.

At the same time, the AI boom that started with OpenAI's ChatGPT release in 2022 revealed a weakness in Intel's product portfolio. The company does make AI accelerator chips, but it can't compete with Nvidia's (NASDAQ:NVDA) top-of-the-line products in terms of AI training performance. Time will tell how the AI opportunity shapes up over the years, but Nvidia has gotten a huge head start in this race.

With its rich history and forward-looking approach, Intel represents both a legacy and a promise in the ever-evolving world of cutting-edge technology.

How to buy Intel stock

1. Open your brokerage account: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in Intel?

Now that you know how to buy Intel shares, let's consider its potential value as a long-term investment.

Is Intel profitable?

Intel's financial health has shown resilience over time. For instance, in the fiscal year 2023, Intel reported revenues of $54.2 billion and $1.7 billion in bottom-line net income. The company is switching gears to expand its chip manufacturing facilities and resell that service to other semiconductor giants. Intel also started the AI surge from a weak position, raising questions about the company's long-term place in that market.

Does Intel pay a dividend?

Intel has a history of paying dividends, reflecting its commitment to returning value to shareholders. The company's dividend history and yield are important factors for investors seeking income alongside capital appreciation.

Its quarterly payouts increased every year for several decades until a strategy shift resulted in a dividend cut in 2023. The company needed more cash for its manufacturing infrastructure expansion and decided the project was a more important use of cash than the generous dividend policy. The dividend yield peaked at 5.9% before the cut, dropping to less than 2%.

ETFs with Intel Inside®

Intel is a component of myriad exchange-traded funds (ETFs) offering diversified exposure to the stock. As a member of many market indexes, such as the S&P 500 (SNPINDEX:^GSPC) and Dow Jones Industrial Average (DJINDICES:^DJI), the stock is automatically included in index funds and ETFs that track these popular index lists. Intel's impact on these funds' overall performances is proportionate to its weighting in the ETF, and the stock can be more influential in smaller ETFs.

Will Intel's stock split?

Intel has a long history of stock splits, with eight splits executed between the fall of 1980 and the summer of 2000. Over that period, one Intel share turned into 192 stubs without affecting the stock's overall market value.

Future splits will depend on various factors, including Intel's stock price and corporate strategy. The company doesn't look likely to invoke another split any time soon, but you never know. Keep an eye on Intel's stock performance and company announcements for potential split information.

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