When Intel (INTC) returned 95% in 2023, few pundits predicted its strong performance. The company did not have a good product lineup for the PC desktop market. It lagged on growing sales from the Artificial Intelligence sector.
Intel is in a holding pattern in the PC market. Its 14th-generation CPU refresh will likely encourage customers to buy out the remaining inventory of the 11th through the 13th generation products.
The GPU market has upside potential. The company launched gaming graphics cards after months of delays. Early adopters needed to work through the bugs. Today, the driver software is solid. This could lead to a huge influx in A770 GPU sales.
At $50, INTC stock trades at a premium. This increases the risk of a peak.
AMD and Nvidia trade at even loftier levels than Intel. They earned it because their graphics chips benefit from strong demand in the AI market. Nvidia has a more solid proprietary platform, so it enjoys an edge.
Tech investors should watch Qualcomm (QCOM) and Micron (MU) closely. Together with Texas Instruments (TXN), those stocks enjoyed a sharp rally in only a month. Profit-taking risks are a natural upcoming risk. If those stocks fall, then AMD, INTC, and NVDA stocks may drop with them.
