INTC (Intel) has bottomed
- Thread starter Master Pu
- Start date
Define "expensive".
I am an Intel guy and excited by the 16 core i9s but I am just not in any hurry to get in at these prices for the stock.
If anything we are practically drowning in so much redundant compute capacity. I want one of those i9s to scale out such a specific compute problem that 99% of the time would make more sense to scale out to a GPU.
Most people aren't even computing anything with a 4 core i5.
I would think the dividend is going to have to get cut at some point. Just can't imagine most business is in a big rush to upgrade their hardware right now.
If anything we are practically drowning in so much redundant compute capacity. I want one of those i9s to scale out such a specific compute problem that 99% of the time would make more sense to scale out to a GPU.
Most people aren't even computing anything with a 4 core i5.
I would think the dividend is going to have to get cut at some point. Just can't imagine most business is in a big rush to upgrade their hardware right now.
A p/e that is 4x higher than a similar competitor is "expensive".
IMO giant companies should not be valued like growth stocks
But that's the thing, tech companies are valued as growth stocks whether we agree or not.
We don't get to decide, the market does. Now you can certainly disagree with the market ... at your own peril.
AMD last few years has outperformed INTC. That's a fact. Whether or not AMD "should" be priced where it is and especially vs INTC can be debated (not really) although the market has spoken so it really is a waste of time and energy. It is what it is.
Maybe the new CEO got things heading in the right direction, but past performance is no guarantee of future results, so I think it is prudent to wait and see. Many a new corp CEO has given new life to an old company only for all to fizzle out years later.
TWT
PS: Just don't understand this issue of missing out, a little, by waiting to see if something actually materializes before jumping into the water.
Actually, we do. Don't like the price? Don't buy it.
I don't have to let FOMO run my life. There are plenty of other things to invest in.
The "market" may pay ridiculous amounts of money for things like Snapchat, but that doesn't mean it has to be treated with any more respect than a bucket full of no income, no job verification, variable rate loans.
I remember the dot com boom and thinking "these people have no idea what they're buying.". Between that and 2008 it convinced me that the professionals can be massively and extensively wrong, for large periods of time and with large amounts of money.
Heck, people still are doing business with Credit Suisse and Deutsch Bank. P/B ratio around 0.25 and they're willingly being selected as a counterparty from a field full of possible alternatives.
You could take that as "the market" saying they're ok. Or you could take it as a bunch of supposed professionals being asleep at the wheel.
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While most of that I could agree with, all I can add is good luck with finding value in INTC that many others couldn't - accentuated by its price continuing to head south.
The crowd is not always wrong.