After Intel (INTC) failed to break out above $45, selling momentum intensified. The bearishness pulled
its peers, including Advanced Micro Devices (AMD) and Nvidia (NVDA), lower.
The semiconductor sector is slumping. Micron (MU) has exceptional value and regular quarterly earnings
strength. Yet the stock is lower since the report.
Intel has internal challenges. It may delay its Ohio expansion if the CHIPS Act stalls. Intel is wise to halt
capital expansion plans unless it receives government support. It needs to minimize spending and
increase product quality and performance to catch up to AMD.
Intel is counting on the CHIPS Act. This is worth $52 billion in subsidies for the semiconductor sector. But
without the government passing the Act, Intel cannot move forward with its plans.
Markets are bracing for a sudden reversal in chip demand. PC sales weakened in the first quarter. It
improved recently. The rebound may prove short-lived. Prices of graphics cards risk falling further. The
cryptocurrency winter hurt Bitcoin prices. This pulled Ethereum prices lower. ETHE mining will end by
late summer as the crypto switches to Proof of Stake.
The excess GPU cards on the market are bad news for AMD and Nvidia. Intel does not have a GPU
product on the market. At a 6.2 times P/E, INTC stock looks like a good value bet.
