Key Points

• Intel (Nasdaq: INTC) gave up the greatest tech lead in recent history, it’s a major train wreck
• The acquisition by Qualcomm is delayed, likely until after the election and a few more bad quarters from Intel
• The company may be removed from The Dow Jones index
• Forget about a turnaround like Intel, instead consider “The Next Nvidia” stocks for incredible gains

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[00:00:00] Doug McIntyre: So Intel is the biggest, uh, chip train wreck of probably the last 10 years. And that’s a train wreck in an industry where you could almost not have it. I mean, it’s almost impossible to, you know, screw things up in the chip market right now. If you just put the word chip in the description of your company, the market cap, you know, it’s doubled in the last year, but.

[00:00:28] Doug McIntyre: Intel decided for whatever reason to stick to the PC chip market, that they did not look toward the future and say that the future is going to be in mobile devices. And then eventually in. The graphics chips that were so powerful and could be developed into even more powerful that you’re going to be powering AI.

[00:00:50] Doug McIntyre: So you had winners like NVIDIA and AMD (Nasdaq: AMD). Now Intel is in enough trouble. So another tech company, Qualcomm is looking at buying it, you know, Intel. Stock goes up people get all excited. But what’s the news there? There’s a bit of news people should know

[00:01:06] Lee Jackson: Well, and we’ve discussed this before and you know, the the qualcomm (Nasdaq: QCOM) intel Hookup may be kind of a strange bedfellow Anyway, just due to the nature of what qualcomm does anyway because 5g chips and things of that nature for phones and all of that But yeah, uh, they’ve come out and announced that they’re not going to make a decision, which means they’re still thinking about it or thinking about some, uh, transition transaction or transition, uh, Intel in until after the election.

[00:01:38] Lee Jackson: So that’s another three weeks from now. And, and I’m sure they won’t be out on November 6th with their proposals.

[00:01:46] Doug McIntyre: Well, the other thing is, is that you’ll probably, I mean, there’ll be more information. I don’t know when the Intel earnings are, but. You are going to get more information. That’s going to move the stock one way or the other.

[00:01:59] Doug McIntyre: It it’s possible that Qualcomm is actually being a little sly here. I mean, I would wait for the next earnings to come out, assume they’re going to be bad, let the stock tumble, then the premium you have to pay when you make an offer for the company is lower, I mean, the, the premium may print a percentage basis.

[00:02:19] Doug McIntyre: Maybe the same, but the actual dollar value of your offer is going to be lower.

[00:02:23] Lee Jackson: Yeah, and everything that Intel has said they’re doing, you know, it looks good on paper. You know, they are pursuing AI chips and they are thinking about firing up the foundry and, and, you know, doing all that. And it’s like, it’ll take billions to do that.

[00:02:40] Lee Jackson: And they’re behind the eight ball as it is. And again, they could very well be removed from the Dow Jones industrial average.

[00:02:47] Doug McIntyre: Yeah. Which, uh, which, you know, they probably They probably deserve. I don’t see a turnaround with Intel and there’s, if let’s say that nobody buys them, I do not see a turnaround.

[00:03:00] Lee Jackson: No, I, and it’s, it’s like turning the Titanic, you know, it’s, it’s, you’ve got a problem coming head on, but you just can’t say, okay, well, it’s, it’s just too big and, and, and again, there will always be business for, you know, laptops and PCs and that sort of business.

[00:03:17] Lee Jackson: But, you know, that’s, that’s chump change compared to the money that’s being made by NVIDIA with, because it takes multiple, multiple chips, you know, to perform a lot of the functions that are needed for, for big, big data AI work.

 

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