Shortly after AMD launched the most powerful desktop processor (7950X), Intel (INTC) stole its thunder.
The chip giant announced the 13 th generation Alder Lake. The i7-13700K will run at up to 5.40 GHz. Most
importantly, the CPU has more ‘E’ or efficient cores. It will process more while consuming far less energy
than the i7-12700K predecessor.
Markets did not care.
INTC stock 6.36% in the last week to $25.77. The stock is in a perpetual freefall. After every attempted
rally, the stock cannot break out of a downtrend. Shares trade at a 5.53 times price-to-earnings multiple.
The dividend of $1.46 a share yields 5.67%.
After the bell on September 30, 2022, Intel said it would list its Mobileye unit. Although the firm will
earn capital gains, the spin-off is too late. Nasdaq lost one-third of its value in 2022. Market conditions
are poor. Intel is not getting a premium from the spin-off.
Graphics Card Launch
Intel’s awkward timing for selling its autonomous driving unit is necessary. The company finally
announced the A770 graphics card. This will appeal to the mainstream market. However, due to the late
launch, Intel needs billions to develop driver software to support the GPU. It also needs funds to market
the product.
Intel is a deep value investment from here. Watch the stock.
