Could Intel Stock become the next NVIDIA?! π
Summary
TLDRIn this stock analysis video, the host reviews Intel following viewer requests, contrasting its performance with Nvidia's remarkable growth. Despite Intel's recent struggles and Nvidia's dominance in AI and high-performance computing with GPUs, the host argues that Intel is a potential buy due to its undervalued stock, possible recovery, and strategic importance in domestic chip production. The video invites viewers to share their thoughts on the stocks of Intel, Nvidia, and AMD.
Takeaways
- π Nvidia's stock has seen a tremendous increase, with a nearly 30,000% growth over the past decade, and it has become the most valued company globally with a market cap over $3 trillion.
- π In contrast, Intel's stock has significantly underperformed, with a decline of over 35% in the past decade and a current market cap of $130 billion, ranking it far behind Nvidia.
- π The video creator owns a large stake in Nvidia and a small stake in Intel, indicating a personal interest in the success of both companies.
- π‘ Nvidia's success is attributed to its focus on GPUs, which are more suited for AI, machine learning, and high-performance computing compared to CPUs.
- π οΈ Intel has been perceived as complacent, sticking to its traditional strength in CPUs, which has limited its growth in the rapidly evolving tech landscape.
- π Nvidia's revenue and net income have seen substantial growth, with profits increasing sevenfold from 2020 to the last reported year.
- π Intel's revenue and profits have declined, with a significant drop from over $20 billion in profit to just under $2 billion in the same period.
- π€ The video creator rates Intel as a 'buy' despite its challenges, seeing potential for recovery and growth due to its market position and opportunities in the chip industry.
- π° Intel's stock is considered undervalued, with a PEG ratio of 0.5, suggesting it might be a good investment for those willing to take on the risk.
- π There is a strategic advantage for Intel as the U.S. seeks to reduce reliance on foreign chip manufacturers, with subsidies supporting domestic production.
- β³ The video creator emphasizes the long-term potential of Intel and suggests a gradual approach to recovery, acknowledging the difficulty of the task ahead.
Q & A
What is the main topic of the video?
-The main topic of the video is a review and analysis of Intel stock in comparison to Nvidia, discussing whether Intel is a sleeper stock worth considering for investment.
What is the 'Series' mentioned in the video about?
-The 'Series' mentioned is a segment where the video creator reviews a particular stock based on comments from viewers, and the analysis is added to a playlist for viewers to watch past episodes.
How has Nvidia's stock performance been over the past decade compared to Intel's?
-Nvidia's stock has skyrocketed, with an increase of close to 30,000% over the past decade, while Intel's stock has seen negative performance, down over 35% in the same period.
What is the current market cap of Nvidia and Intel?
-As of the time of recording, Nvidia's market cap is over $3 trillion, making it the most valued company in the world, whereas Intel's market cap is at $130 billion, ranking it 114th.
Why has Nvidia's stock outperformed Intel's?
-Nvidia's focus on GPUs, which are more powerful for AI and machine learning applications, has driven its growth. Intel, traditionally strong in CPUs, has been more complacent and has faced manufacturing delays and competition from AMD.
What is the difference between CPUs and GPUs in terms of AI capabilities?
-GPUs have thousands of cores for handling many calculations simultaneously, which is crucial for AI tasks, while CPUs, with fewer cores, are more efficient at handling single tasks at a time.
What is the current EPS expectation for Nvidia and Intel in the coming year?
-Nvidia's EPS is expected to more than double, while Intel's EPS is expected to grow at a much slower pace, almost remaining flat.
Why does the video creator believe Intel stock is a buy despite its performance?
-The creator believes Intel is a buy due to its heavily beaten-down stock price, potential for recovery as it addresses past manufacturing issues, and the growing demand for high-performance chips.
What is the significance of Intel building its own chips compared to outsourcing like Nvidia and AMD?
-Building its own chips can give Intel more control over its product quality and innovation, but it has also led to delays and other issues that have negatively impacted its market position.
What is the potential impact of geopolitical concerns on Intel's future?
-Geopolitical concerns, such as the reliance on Taiwan Semiconductor, could lead to increased domestic chip production in the U.S., benefiting companies like Intel with subsidies and demand for domestic suppliers.
What does the video creator suggest for investors considering Intel stock?
-The creator suggests that investors should consider Intel stock for its potential turnaround and upside, but also acknowledges the risks and advises investors to understand their risk tolerance.
Outlines
π Stock Review Series Introduction
The video script begins with a host welcoming viewers to a series focused on reviewing stocks, particularly those suggested by the audience. The host highlights the process for viewers to have their stock reviewed and mentions that the series is growing, with a playlist available for past episodes. Today's video is inspired by a comment from a Discord member named Michael, who asks for an analysis of Intel Corporation, comparing it to Nvidia's performance. The host acknowledges the contrast between Nvidia's soaring stock and Intel's decline, setting the stage for a comparative analysis of the two tech giants.
π Comparative Analysis of Nvidia and Intel
This paragraph delves into the stark differences between Nvidia and Intel's stock performances over the past decade. Nvidia's stock has seen an astronomical rise, becoming the world's most valuable company by market cap, while Intel's stock has significantly underperformed. The host provides specific figures to illustrate the performance gap and discusses the broader implications of this disparity. The analysis touches on the companies' market dominance in their respective fields, with Nvidia leading in GPUs and Intel in CPUs. The host also discloses personal investments in both companies, setting a foundation for an unbiased yet informed perspective on their stock values.
π Nvidia's Success and Intel's Challenges
The script continues with an exploration of the factors contributing to Nvidia's success and Intel's struggles. Nvidia's aggressive focus on GPUs, which are particularly suited for AI and high-performance computing, has driven its growth in lucrative markets. In contrast, Intel's complacency in sticking to traditional CPU technology has hindered its progress in the rapidly evolving tech landscape. The host outlines the technical advantages of GPUs over CPUs in AI applications and discusses Intel's manufacturing challenges, which have allowed competitors like AMD to gain market share. The paragraph concludes with a revenue growth comparison and projections that further emphasize the divergence in the companies' trajectories.
π‘ Intel's Potential as a Sleeper Stock
Despite Intel's setbacks, the host argues that Intel's stock could be a worthwhile investment, labeling it a 'sleeper stock' with significant potential for recovery. The host provides three reasons for this view: Intel's stock is undervalued, presenting limited downside risk; Intel has the capacity to overcome its self-inflicted issues and capitalize on the demand for high-performance chips; and geopolitical factors may increase demand for domestic chip suppliers like Intel. The host acknowledges the challenges Intel faces but maintains a cautiously optimistic outlook, inviting viewers to share their thoughts on the matter.
Mindmap
Keywords
π‘Stocks
π‘Intel
π‘Nvidia
π‘Sleeper Stock
π‘CPUs (Central Processing Units)
π‘GPUs (Graphics Processing Units)
π‘Market Cap
π‘AI (Artificial Intelligence)
π‘Investment
π‘Revenue Growth
π‘Turnaround Potential
Highlights
Introduction to the 'Series' where viewers' comments are reviewed to analyze specific stocks.
Comment from Discord member Michael requesting a review of Intel stock and its comparison to Nvidia.
Nvidia's stock performance has been outstanding, with a significant increase over the past decade.
Intel's stock has seen negative performance over the same period, contrasting with Nvidia's growth.
Nvidia's market cap has surpassed $3 trillion, making it the most valuable company in the world.
Intel's market cap stands at $130 billion, significantly lower than Nvidia's valuation.
Nvidia's success attributed to its focus on GPUs for AI and high-performance computing.
Intel's complacency in sticking to traditional CPUs has been a factor in its lagging performance.
Comparison of revenue growth between Nvidia and Intel, showing a stark contrast.
Nvidia's net income has seen a dramatic increase, while Intel's profits have declined.
The presenter's personal investment disclosure in both Nvidia and Intel stocks.
Three reasons why Intel stock is considered a buy despite its challenges.
Intel's potential for recovery due to its self-inflicted issues and opportunities in the chip market.
The growing demand for AI chips and Intel's efforts to launch discrete GPUs.
U.S. reliance on Taiwan semiconductor and potential benefits for domestic suppliers like Intel.
Conclusion on Intel's potential as a sleeper stock with turnaround potential despite risks.
Invitation for viewers to share their thoughts on Nvidia, Intel, and AMD stocks.
Transcripts
hey what's up everyone welcome back to
my world of stocks and welcome back to
my stocks my viewers want me to review
Series where I pick a comment straight
from you guys asking to review a
particular stock and share my opinion on
it which as always every episode gets
added to our playlist and the link for
that is down in the description in case
you want to see past episodes but also
if you ever want to be uh featured in a
future video if you want your stock
featured all you got to do leave a
detailed comment either here or on
patreon or Discord explaining why you
want that specific stock covered and I
may choose it for a future video and do
an analysis video uh on it but as for
today's video we got a comment from one
of our Discord members Michael who
posted in the video suggestion section
saying Ali could you uh do a video on
Intel with everyone watching Nvidia do
you think Intel is a sleeper stock to
consider picking up it looks very cheap
to me and I can't believe how low it's
gone over the years thanks for the
fantastic videos all right well you are
very welcome Michael and thank you for
being a supporter I couldn't do this
without you so I appreciate that support
uh and actually this one here this
comment covers actually a lot of my
viewers comments because a lot of people
have been asking me similar things about
Intel stock recently especially you know
over the past year where Nvidia stock
has of course skyrocketed even becoming
the most valued company in the entire
world and yet a big rival in Intel has
only continue to fall heavily now I
wouldn't say that these two are perfect
comparison companies but when it comes
to processor chip developers Intel and
Nvidia have always been kind of the two
big dogs especially for CPUs and gpus
respectively with Intel of course being
more dominant in CPUs and also apus
which combines like a CPU and a GPU
together while Nvidia really led the
pack in high performance gpus with AMD
also being kind of the you know like
smaller rival to both of those companies
and maybe one day we could do a video on
AMD uh as well cuz I think that would be
quite interesting to analyze too but let
me know if you'd want to see that down
in the in the comments anyway in recent
years we've also seen some crossover
start to take place with Intel now
developing some high performance gpus as
well while even Nvidia has entered into
the CPU Market too but again both
companies continue to dominate their
respective Fields anyway regardless I
think that there is enough overlap here
to where we can draw some comparisons
analyze the two companies and their
performance compare the stocks and their
valuations and ultimately determine if
there's any value here worth picking up
as an investment of course in Intel but
I'll also share my quick opinion or
thoughts on Nvidia 2 since is a little
bit of a comparison but uh let's just go
ahead and run through some of this
analysis here own by the way uh just for
full disclosure I do own a very large
stake in in Nvidia stock it's a top
three holding of mine in my personal
portfolio and I also own a much smaller
uh kind of tiny piece of Intel as well
so I would love to see both companies do
well over the long term but let's go
ahead and just dig in here and let's see
what we find now uh let's go ahead and
start by comparing how the two stocks
have performed so far and like I said
Nvidia has just been absolutely on fire
skyrocketing by close to
30,000 per over the past decade it's
also up over
3,400 over the past 5 years it's still
up over 200% over the past one year and
then so far year to date it's also up
over
180% as well so just an absolute tear in
recent years in terms of performance Now
intel on the other hand has been a
completely different story as they've
actually seen uh negative performance
over the past decade down over 35% in
the past 5 years as well they're also
down over 12% in in the past one year
and then also down over 36% so far year
to date so just horrible performance by
comparison now as a result of all this
we've now seen Nvidia become the number
one largest company in the entire world
by market cap at over $3 trillion which
is pretty insane to think about as
they're actually worth more than both
Amazon and meta put together how crazy
is that now this might change by the
time you watch this video cuz really the
top three have been kind of going back
back and forth a little lately but at
the time of this recording for NVIDIA to
be worth more than all of these giant
Behemoth like you know Microsoft Apple
Google Amazon and more it's just really
mind-blowing to me Which Intel by
comparison well we don't find them until
all the way down to the number
114 spot at $130 billion worth of market
cap which is still pretty larger but I
mean you make some comparisons here you
could take like 25 intels and put them
together and it would still not be worth
as much as just one Nvidia alone that's
pretty crazy I mean I remember back in
the day it was a complete opposite with
Intel being many times larger than
Nvidia so uh what exactly happened here
uh why did this happen what did Nvidia
get so right that Intel got so wrong
well uh remember these are not going to
be perfect comparisons here but in
general if I am just kind of trying to
simplify the story for you well it
really does have to do with Nvidia
pushing the boundaries and going all in
on Power and artificial intelligence
particularly focusing on graphic
processing units what we call gpus that
are much more um powerful or capable uh
compared to CPUs when running things
like artificial intelligence machine
learning high performance Computing
they're even very good at cloud
computing and all kinds of things that
also have to do with graphical
performance like video games or you know
camera systems on autonomous driving
platforms or even smart City platforms
the metaverse all of those like really
high growth markets that we expect to be
worth many trillions of dollars in the
future well you know Nvidia has really
specialized in that area however Intel
on the other hand the old king of
processors has in my opinion been much
more complacent just kind of holding on
to their leadership in CPUs what are
central processing units which uh don't
get me wrong those are still hugely
important and are not going anywhere
they're kind of like the brains of your
computer but they're just not at the
same level of gpus when it comes to Ai
and other like high performance or
machine learning kind of capabilities
and and there's several reasons for that
for example you know gpus have thousands
of cores compared to CPUs only having
like you know dozens which these cores
are used for tackling many calculations
at once which is crucial for AI when
you're training massive neural networks
that involve complex math across uh
unimaginable amounts of data really but
CPUs on the other hand while they are
strong for sure uh are geared more
towards handling a single task at a time
with high efficiency gpus also boast
much faster memory access or what we
call bandwidth which is crucial for AI
since the algorithms need to process
huge data sets and be able to move data
back and forth between memory and cores
and while CPUs are generally designed to
be more well-rounded for various
Computing needs gpus are instead kind of
specialized for handling the type of
repetitive calculations that you got to
do a lot of them all at once got to keep
keep it going same thing over and over
very repetitive calculations that really
dominate AI big you know big AI data
workloads and so the result of all this
is that the demand for AI and for
nvidia's chips in particular uh to power
that AI has really skyrocketed while
Intel has just kind of remained what
they've always been which is a still
very solid chips company but nowhere
near the standout kind of rising star
that Nvidia has become and so as a
result here's a chart showing the two
companies Revenue growth over the years
and you can see just how dramatic of a
difference it's been with Nvidia growing
from less than 20 billion in 2020 to
over 60 billion last year while Intel
has crashed from you know close to 80
billion to now even less than Nvidia at
54 billion and if you think that's crazy
I mean just look at the next two years
expected where Nvidia is projected to
grow to nearly 3 times the size of Intel
but most important of all is how this
growth has translated to a gigantic lead
on the bottom line too with nvidia's net
income profits soaring from less than 5
billion in 2020 up to about 30 billion
last year that's around a seven times
increase while Intel has instead fallen
from over 20 billion in profit to just
less than two billion last year I mean
it's truly fascinating how these two
companies have just kind of swapped in
terms of performance and the crazy thing
is that it's not even slowing down this
year nvidia's EPS is still expected to
more than double while Intel's is
crawling to almost a flat pace and yet I
actually think that Intel stock is still
a buy right now and I know I sound crazy
right well let me explain here if I was
forced to rate Intel as a buy a hold or
a sell I would give it a buy rating now
that's not because I think that it'll
become the next Nvidia my answer to that
specific question is no I don't think
Intel will be able to catch up to
nvidia's lead at this point for the
things that they particularly excel at
but my argument would be that it doesn't
have to reach that point in order to
still be a good stock worth investing in
it just needs to uh capitalize on a few
different things and I'm just going to
give you three primary uh reasons why I
feel that Intel stock is a buy at these
levels and number one is because the
stock is just already so heavily beaten
down at this point that I feel it leaves
little downside risk but plenty of
upside potential again I'm not saying
that it'll ever soar like in but even if
it can get back to anywhere close to
like its former highs I mean that would
still be substantial gains of probably
over 100% And at a peeg ratio of only
0.5 that looks Dirt Cheap to me for what
is the former king of processors that
still holds around 2third of the x86 CPU
market share now the question is can
Intel actually recover well that's
reason number too because I think it
actually can because first of all much
of Intel's damage was self-inflicted see
unlike Nvidia and AMD who outsourc their
chip manufacturing Intel actually builds
the chips themselves and while there can
be some advantages to that the past few
years were a bit of a disadvantage as
they suffered from multiple delays
incompetence a lack of innovation and
even Supply constraints that rival
Taiwan semiconductor I just feel handled
much better which ultimately benefited
Intel's biggest rival in AMD and
ultimately helped them steal a ton of
market share from Intel but again I feel
that these are issues that Intel can
correct over time which I also feel that
because there is so much demand for high
performance chips I think Intel will get
plenty of opportunities to win customers
over again and I don't see that demand
ever going away in the future now keep
in mind Intel themselves have now been
building discrete gpus with their next
Generation battle mage series uh
expected to come in the next year and
while that's been a bumpy ride so far
that I don't expect to ever get close to
eonian Nvidia I just think that they
need to launch these alternative options
for the growing Market since Rising
demand should help them gain traction
over time and then reason number three
uh speaking about how much demand there
is in AI chips well keep in mind that
America is extremely reliant on Taiwan
semiconductor which is of course located
in Taiwan right next to China and one of
America's biggest fears is that China
may try to take them over in the future
which regardless of whether or not that
turns out to be true there's still no
doubt that America would love to shift
some of their Reliance on chips over to
domestic suppliers like Intel and
because of that we've seen huge
subsidies take place to help Intel build
and expand their factories here
Nationwide which I also feel adds a bit
to their longevity and overall demand
and even a bit of security too to you
know this area and the market that
they're uh competing in anyway in
conclusion what I'm trying to say is
that uh you know when answering some of
these questions like will will any of
these things that I want Intel to do as
an investor will any of them be easy no
it's not going to be easy it's going to
be a tough road for them they're in a
bit of a transition phase they got to
try to recover here and uh you know if
you ask me can they be the next Nvidia
no I I don't think they can be the next
Nvidia will they even get close to
Nvidia no I don't think so either but is
Intel a bit of a sleeper chip stock that
is down a lot right now with substantial
turnaround potential yeah I think so and
look it's risky for sure you got to know
what your risk tolerance is here but for
me personally just for me I'm just
sharing my opinion I'm just letting you
know what I think you don't have to
agree with me it's just what I think but
I feel that you know for me buying in at
small amounts here at these levels just
in case it does happen to accomplish the
the things I wanted to and it does
happen to to recover and take off well I
just think it's worth it I think in the
future it should trade higher than where
it is today and uh I've got plenty of
time myself to wait for that future so
uh it's really what I'm hoping for but
uh hey I would love to hear from you
guys what are your thoughts what do you
all think and you know do you own own
Nvidia Intel do you even own AMD what
what are your thoughts on these
companies on their stocks right now at
current levels do you think Nvidia is
way too high you think it's going to
keep going you think Intel is uh too low
you think it'll sink lower I'd love to
hear your thoughts guys but let me know
down in the comments section thanks
again for stopping by my friends and
thank you for all your support it means
so much to me and I will catch you in
the next video good luck with any
decisions you make out there I'll see
you next time guys take care bye-bye
[Music]
he
[Music]
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