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Biden Just Pulled The Rug On Intel (INTC) And Removed Their Last Lifeline

Austin Smith

Published: November 30, 2024 9:19 am

Key Points:

• Intel (NASDAQ: INTC) faces nearly impossible competition against rivals like NVIDIA (NASDAQ: NVDA) when it neglected to enter the AI and graphics chip industries.
• The once storied chip maker is no longer included in the Dow Jones Industrial Average
• Intel’s long-term prospects seem dubious at best
• Nvidia has been the stock to own the last decade, but The Next Nvidia stocks could be even better. Click here to see the three stocks smart money is buying hand over first.

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Transcript:

[00:00:00] Doug: I’m going to talk about Intel for a second. Intel has been destroyed. Uh, Intel owned the chip business for decades. They didn’t get into the graphic chip business. Which means they didn’t get into the AI chip business, which means they were supposed to be the next NVIDIA and NVIDIA was the next NVIDIA.

[00:00:17] Doug: The most valuable company in the world, three and a half trillion dollars. And I get, my guess is Intel isn’t even in the top 50. So what’s the next piece of bad news that they got today?

[00:00:31] Lee: Well, you know, the administration is going to try to slash and burn until the bitter end. And one of the things that’s going to get slashed and burned apparently is the chips money.

[00:00:43] Lee: That was designated for, you know, all the big domestic companies, AMD (NASDAQ: AMD), probably Qualcomm (NASDAQ: QCOM), Intel. What was reported today that, uh, Intel’s, uh, amount from the government is going to be cut. Now the exact amount or the final number to them is, is to be determined. That’s not a good sign, especially. And as we predicted, Intel is getting booted from the Dow Jones industrials are already has been.

[00:01:11] Lee: And we predicted that about six weeks ago, a few months ago, and it doesn’t look like a good situation for, like you mentioned, at one time was the premier chip company in the United States and the world.

[00:01:25] Doug: I don’t know that anybody will buy Intel. I mean, you know, you say, well, a company, it’s still got a good brand.

[00:01:32] Doug: It’s still got products that where there’s a market for them, but I don’t see a future for Intel other than to just keep getting smaller and for shareholders to get kicked in the teeth every few weeks.

[00:01:43] Lee: Yeah. I mean, you know, they’ll always be a go to chip for laptops, PCs. Maybe some stuff like that.

[00:01:51] Lee: Maybe, maybe some chips for phones and maybe they have an automotive business as well. But yeah, I mean the real money, we know where the real money is and it’s not in low cost chips that go in, uh, you know, Asus laptops.

[00:02:06] Doug: Jesus. All right. Well, I guess we’ll come back to this the next time Intel announces earnings or that they’re being broken up or sold.

[00:02:15] Doug: But I, I don’t see any reason to kick them while they’re down any more than we already have.

[00:02:21] Lee: Well, and it’s going to be interesting to see, you know, they had some pretty grandiose plans that they were throwing down a year and 18 months ago. And it’s going to be interesting to see what happens to all of those. The big plan in Ohio and this and that is like, is, is everything doomed?

[00:02:36] Lee: You know, it could be.