Anthony Speciale Stock Market Analyst

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Getting in on the Next Big Tech Stock

Hi guys, Tim Melvin here, and welcome once again to A Better Way to Wealth!

Today, let’s talk about Intel (INTC)…

So far, tech stocks are getting absolutely crushed in 2022.

Every time they try to rally, news comes into the market, interest rates creep a little higher and they just get slaughtered.

Of course, everybody knows Advanced Micro Devices (AMD) is taking lots of market share from Intel in the PC market.

The returns on the stock had just been awful over the last year and, with stocks like Micron Technology (MU) and Taiwan Semiconductor (TSM) soaring to new highs, we can see that Intel is pretty much stuck in a rut.

The company’s stock really hasn’t done anything, missing out on all the rally of 2021.

Most Wall Street analysts absolutely hate the stock right now. Nobody’s got it as a strong buy.

Maybe there’s a couple lukewarm buys, but there’s mostly a lot of avoids, a lot of market performs and a lot of underperform ratings on the stock.

But here’s the thing, guys… I’ve heard this so many times, especially the bit about Advanced Micro Devices taking market share in certain segments of the market.

And yet, here’s Intel still plugging along, selling $78 billion worth of chips, and everybody is undervaluing Intel’s ongoing contribution to new research and new products.

The stock’s dirt cheap when you compare it to any other tech stock or semiconductor stock.

It’s trading at about 10 times earnings, with a dividend yield of 2.6% that you can reasonably expect to grow over time. 

We’ve had insider buying, including the new CEO, who last year put a whole bunch of his own money into the stock in addition to his stock grants and options and paycheck.

I guess he thought the company was undervalued, so he spent some of his newfound money on shares of Intel in the open market.

Intel is not just resting on its laurels. They’re doing a lot right.

They’ve invested a bunch of money and introduced specialty chips that are going to make them a leader in artificial intelligence.

They’ve got some new chips out that are going to substantially increase their market share and grow their data center business (which is going to be one of the fastest growing businesses in the country over the next several years).

In response to supply chain issues that developed in 2020 and are still going on with semiconductors, Intel has committed to spending $20 billion to bring semiconductor manufacturing back into the United States.

They’re going to build some plants down in Arizona where they will be manufacturing chips.

More importantly, though, and for a reasonable fee, of course, Intel is going to allow other companies to use these facilities to produce chips.

They’re going to bring as much of this supply chain back into the US as possible.

That’s a huge step forward for the US semiconductor industry and can alleviate many of the shortages and supply chain problems we have been seeing.

All of this is great! There are good things going on at Intel… They’ve got chips in several different markets that are really going to keep them as a leader in the industry.

That’s, however, not the overriding reason I want you to buy shares of Intel at the current valuations… 

The Next Big Thing…

Unless you have a really great relationship with a broker and are a huge customer, buying shares of Intel right now is the only way to invest in Mobileye, the driverless car company, before Intel does an IPO of part of the company later this year.

They’ve already said they’re going to do the IPO in 2022 for a minority stake in Mobileye. They will retain majority ownership.

This is going to be a value-unlocking event because Mobileye is the leader in driverless car technology. They are way in front of all their competitors and are actually going to have a production autonomous taxi ready by 2024. Their SuperVision autonomous vehicle system just went into production late last year.

Nobody else is anywhere near them when it comes to rolling out products and actual cars for the taxi service market, and owning Intel is the best way to gain exposure to Mobileye, which could easily be one of the biggest tech companies of the next five to 10 years.

Now, it’s mostly going to be the driverless taxi business in the cities. But going further down the road, you’ve got fully autonomous vehicles that can go from city to city, and driverless trucks are going to be a big deal because that helps with the supply chain problems of there not being enough truck drivers.

Mobileye is just way ahead of any of their competitors, and the IPO is going to be a hot deal in huge demand, especially if the market firms up later in the year.

Now, that may or may not happen, but, either way, Mobileye is going to be hot, and it will be near impossible to get your hands on shares. 

But you can buy Intel right now at just 10 times earnings and be a majority owner of Mobileye. Remember, they’re only doing a minority stake in the initial public offering.

Intel may not be a short-term market leader, but its ownership of Mobileye as well as its big moves in artificial intelligence and other things are going to help this stock stay in the league, so to speak.

It should be trading at a much higher multiple. It’s just not very popular with Wall Street or traders or investors right now, but, when this IPO is done, it’s going to be.

When that happens, I think we could see the stock move a lot higher than it’s currently trading.

This represents, I think, a massive opportunity to take advantage of one of the leaders in the driverless car business.

The driverless taxi is going to be huge. Mobileye is going to be the leading player, and Intel is going to own the majority of Mobileye.

If played correctly, we can make money from that as shareholders by buying it at the current, very depressed valuation. Now that’s A Better Way to Wealth.