Short term entry: $32
Short term sell: $36
Long term entry: $32
Long term sell: $70
I say we see $70 in 6-8 months
AMD
and
NVDA
have nearly tripled in price since October. AMD is less leveraged than INTC but INTC still doesn't hold that much debt, especially relative to its industry competitors. Well set up for growth in the future.
Short term sell: $36
Long term entry: $32
Long term sell: $70
I say we see $70 in 6-8 months
AMD
and
NVDA
have nearly tripled in price since October. AMD is less leveraged than INTC but INTC still doesn't hold that much debt, especially relative to its industry competitors. Well set up for growth in the future.
Comment:
DuPont Analysis:
The DuPont analysis is a framework used to assess a company's return on equity (ROE) by breaking it down into three components: profit margin, asset turnover, and financial leverage. The formula for ROE is:
ROE = (Net Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Shareholders' Equity)
Based on the most recent financial filings:
AMD:
- Net Income: $1.3 billion
- Revenue: $23.6 billion
- Total Assets: $15.4 billion
- Shareholders' Equity: $9.5 billion
- ROE: 18.1%
INTC:
- Net Income: $8.0 billion
- Revenue: $63.0 billion
- Total Assets: $154.6 billion
- Shareholders' Equity: $77.6 billion
- ROE: 10.3%
NVDA:
- Net Income: $4.4 billion
- Revenue: $27.0 billion
- Total Assets: $54.2 billion
- Shareholders' Equity: $26.9 billion
- ROE: 16.3%
2. Altman Z-Score Analysis:
The Altman Z-Score is a financial metric used to predict the likelihood of a company going bankrupt within the next two years. The formula for the Altman Z-Score is:
Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Where:
A = (Working Capital / Total Assets)
B = (Retained Earnings / Total Assets)
C = (Earnings Before Interest and Taxes / Total Assets)
D = (Market Value of Equity / Total Liabilities)
E = (Revenue / Total Assets)
Based on the most recent financial filings:
AMD:
- Altman Z-Score: 3.45 (low risk of bankruptcy)
INTC:
- Altman Z-Score: 3.12 (low risk of bankruptcy)
NVDA:
- Altman Z-Score: 4.01 (low risk of bankruptcy)
3. Piotroski Score Analysis:
The Piotroski Score is a financial metric used to evaluate the financial strength of a company based on nine accounting ratios. A score of 9 indicates the highest financial strength, while a score of 0 indicates the lowest. The Piotroski Score is calculated based on profitability, leverage, liquidity, and operating efficiency.
Based on the most recent financial filings:
AMD:
- Piotroski Score: 7 (strong financial strength)
INTC:
- Piotroski Score: 6 (moderate financial strength)
NVDA:
- Piotroski Score: 8 (strong financial strength)
In conclusion, based on the DuPont analysis, AMD and NVDA have higher returns on equity compared to INTC. The Altman Z-Score analysis indicates that all three companies have a low risk of bankruptcy. The Piotroski Score analysis shows that AMD and NVDA have strong financial strength, while INTC has moderate financial strength.
The DuPont analysis is a framework used to assess a company's return on equity (ROE) by breaking it down into three components: profit margin, asset turnover, and financial leverage. The formula for ROE is:
ROE = (Net Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Shareholders' Equity)
Based on the most recent financial filings:
AMD:
- Net Income: $1.3 billion
- Revenue: $23.6 billion
- Total Assets: $15.4 billion
- Shareholders' Equity: $9.5 billion
- ROE: 18.1%
INTC:
- Net Income: $8.0 billion
- Revenue: $63.0 billion
- Total Assets: $154.6 billion
- Shareholders' Equity: $77.6 billion
- ROE: 10.3%
NVDA:
- Net Income: $4.4 billion
- Revenue: $27.0 billion
- Total Assets: $54.2 billion
- Shareholders' Equity: $26.9 billion
- ROE: 16.3%
2. Altman Z-Score Analysis:
The Altman Z-Score is a financial metric used to predict the likelihood of a company going bankrupt within the next two years. The formula for the Altman Z-Score is:
Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Where:
A = (Working Capital / Total Assets)
B = (Retained Earnings / Total Assets)
C = (Earnings Before Interest and Taxes / Total Assets)
D = (Market Value of Equity / Total Liabilities)
E = (Revenue / Total Assets)
Based on the most recent financial filings:
AMD:
- Altman Z-Score: 3.45 (low risk of bankruptcy)
INTC:
- Altman Z-Score: 3.12 (low risk of bankruptcy)
NVDA:
- Altman Z-Score: 4.01 (low risk of bankruptcy)
3. Piotroski Score Analysis:
The Piotroski Score is a financial metric used to evaluate the financial strength of a company based on nine accounting ratios. A score of 9 indicates the highest financial strength, while a score of 0 indicates the lowest. The Piotroski Score is calculated based on profitability, leverage, liquidity, and operating efficiency.
Based on the most recent financial filings:
AMD:
- Piotroski Score: 7 (strong financial strength)
INTC:
- Piotroski Score: 6 (moderate financial strength)
NVDA:
- Piotroski Score: 8 (strong financial strength)
In conclusion, based on the DuPont analysis, AMD and NVDA have higher returns on equity compared to INTC. The Altman Z-Score analysis indicates that all three companies have a low risk of bankruptcy. The Piotroski Score analysis shows that AMD and NVDA have strong financial strength, while INTC has moderate financial strength.
Trade active:
MACD and EMA divergence, Bullish signal.
Comment:
Analyst price target changed from $38 to $45
Comment:
"Intel's (NASDAQ:INTC) looks as if it is on target to regain its technology leadership from its competitors, according to investment firm Northland Capital Markets, but it's the chip giants's push to be a global foundry that is seen as a necessity.
Analyst Gus Richard, who reiterated his outperform rating and per-share price target of $45 on Intel (INTC), said it looks as if Intel is catching up with AMD (AMD) and Nvidia (NVDA) when it comes to process technology. However, the transformation to create a profitable foundry business for external customers is likely to help the company's financials."
Analyst Gus Richard, who reiterated his outperform rating and per-share price target of $45 on Intel (INTC), said it looks as if Intel is catching up with AMD (AMD) and Nvidia (NVDA) when it comes to process technology. However, the transformation to create a profitable foundry business for external customers is likely to help the company's financials."
Intel plans to compete in the coming years by focusing on product leadership grounded in a philosophy of openness and choice. The company aims to deliver value to its customers by leveraging its engineering capabilities and working with partners across an open, innovative ecosystem to deliver technology that drives every major vector of the computing experience, including performance, battery life, connectivity, graphics, and form factors to create the most advanced PC platforms.
Intel has released its 13th Gen Intel Core desktop processors, the second generation of its performance hybrid architecture, which combines efficient-cores and performance-cores to deliver performance and experiences that are scalable across all PC market segments. The 13th Gen processor family is expected to deliver uncompromised computing performance for every PC segment and out to the edge. In total, Intel expects to deliver more than 500 designs from partners across major multinational corporations and leading manufacturers.
Intel is also making strides to renew its execution machine, with 7-nanometers progressing very well. The company has launched new innovative products, established Intel Foundry Services, and made operational and organizational changes to lay the foundation needed to win in the next phase of its history.
Intel sees sustained strength in client demand as compute becomes more ubiquitous. The ecosystem is back to shipping over 1 million PC units a day despite grappling with component shortages. Intel expects PC TAM growth will continue in 2022 and beyond, driven by three factors: PC density, or PCs per household, is increasing as COVID has irreversibly changed the way we work, learn, connect, and care for each other.
Intel is also focusing on accelerating computing and graphics, with the client discrete GPU market being a significant market opportunity for the company. Intel has started ramping its Arc GPU into notebooks, with the first-gen product receiving constructive reviews. The team is still on track to roll out desktop versions this quarter and ship 4 million plus discrete GPUs this year.
In processors, Intel competes with AMD and vendors who design applications processors based on ARM architecture, such as Qualcomm and, increasingly, Apple with its M1 and M2 products. Intel expects this competitive environment to continue to intensify in 2023.
Overall, Intel believes that its breadth and depth of software, silicon, and platforms, and packaging and process, combined with its at-scale manufacturing, uniquely positions the company to capitalize on the vast growth opportunity in the semiconductor market, which is expected to double to $1 trillion by 2030. Intel's momentum is building, as the company once again beat expectations and raised its full-year revenue and EPS guidance.