Could Intel Stock become the next NVIDIA?! 🚀

Summary

In 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

• 📈 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.
• 📉 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.
• 🔍 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.
• 💡 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.
• 🛠️ Intel has been perceived as complacent, sticking to its traditional strength in CPUs, which has limited its growth in the rapidly evolving tech landscape.
• 🚀 Nvidia's revenue and net income have seen substantial growth, with profits increasing sevenfold from 2020 to the last reported year.
• 📉 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.
• 🤔 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.
• 💰 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.
• 🏭 There is a strategic advantage for Intel as the U.S. seeks to reduce reliance on foreign chip manufacturers, with subsidies supporting domestic production.
• ⏳ 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

00:00

📈 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.

05:01

🔍 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.

10:02

🚀 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.

💡 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.

Keywords

💡Stocks

Stocks refer to the equity ownership in a company that investors can buy and sell. In the context of the video, the host discusses reviewing specific stocks and shares opinions on their potential as investments. Stocks are the central theme of the video, as the host analyzes the performance of Intel and Nvidia stocks.

💡Intel

Intel is a multinational technology corporation known for its processors. The video script mentions Intel as a 'sleeper stock,' suggesting it may be undervalued and could be a good investment opportunity. The host compares Intel's performance with Nvidia, another tech giant, to evaluate its potential.

💡Nvidia

Nvidia is a major player in the technology industry, specializing in graphics processing units (GPUs). The script discusses Nvidia's significant growth and market dominance, especially in AI and high-performance computing, and contrasts it with Intel's performance.

💡Sleeper Stock

A sleeper stock is a term used to describe a company's stock that is currently undervalued but has the potential for significant growth. In the script, the viewer Michael suggests that Intel might be a sleeper stock, implying that despite its current low valuation, it could offer substantial returns in the future.

💡CPUs (Central Processing Units)

CPUs are the primary components of a computer that perform the basic arithmetic, logic, and input/output operations. The video discusses Intel's dominance in the CPU market and how it contrasts with Nvidia's focus on GPUs, which are better suited for tasks like AI and machine learning.

💡GPUs (Graphics Processing Units)

GPUs are specialized electronic circuits designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. The script highlights Nvidia's success in the GPU market and how it has capitalized on the demand for AI and machine learning capabilities.

💡Market Cap

Market capitalization is the total market value of a company's outstanding shares of stock. The video uses market cap to compare the sizes of Nvidia and Intel, showing a stark difference in their valuations and indicating Nvidia's significant lead in the market.

💡AI (Artificial Intelligence)

Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The script discusses how AI has been a driving factor in Nvidia's growth, as their GPUs are particularly well-suited for AI applications.

💡Investment

An investment is an asset or item acquired with the goal of generating income or appreciation. The video's theme revolves around evaluating stocks as investments, with the host providing analysis to determine if Intel or Nvidia represents a good investment opportunity.

💡Revenue Growth

Revenue growth refers to an increase in the income generated from the sale of goods or services of a company over a specific period. The script uses revenue growth as a metric to compare the financial performance of Intel and Nvidia, showing a significant disparity between the two companies.

💡Turnaround Potential

Turnaround potential refers to the possibility that a company's performance can improve and become profitable after a period of decline. The host of the video suggests that Intel has turnaround potential, despite its current challenges, based on its market position and opportunities for recovery.

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

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