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$4 Billion Golden Oppoerunity

INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom

Companies / AI Jun 22, 2019 - 04:42 PM GMT

By: Nadeem_Walayat

Companies

Where to invest to profit from the exponential machine intelligence mega-trend. I have ranked these stocks in in terms of risk vs reward and volatility. Do remember that when investing in the stock market that your capital is at risk. There are NO SURE BETS!

If you've not already done so then watch my following video from November 2016 which illustrates why everything will start to change exponentially by 2021.


Machine Intelligence has become a broad church that has fragmented or branched off into a myriad of sectors and the number keeps expanding every year. Many years ago I broke the machine intelligence mega-trend down into 9 key sectors that I have now further fragmented into 10 by basically adding Cyber Security as the following list illustrates, the 10 key machine mega-trend sectors to invest in.

Machine Intelligence Investing Mega-trend

For a primer on how to invest in AI Stocks then see my following recent video:

How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend

Top 10 AI Stocks

The stocks are ranked in order of priority. Also to further break down the list, I consider the first 5 stocks as PRIMARY i.e. the most important. The next 3 as of SECONDARY importance and finally 2 far more risky TERTIARY stocks.

The stocks analysis is being published in reverse order (10 to 1) as this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

4. INTEL - INTC

INTEL founded by Gordon Moore and Robert Noyce started the tech ball rolling in 1970 with worlds first microprocessor the 4004 ever since it's been a case of chip processing power doubling every 2 years or. INTEL is the sector leader in microprocessors just as Google is in Search, Just as Amazon is in online sales, just as Microsoft is in operating systems and office software. Where personally on occasion I may have dabbled with computers running on AMD processors, however usually there's been an Intel processor powering my desktop computers.

Where AI is concerned, having seen competitors such as GPU maker NVIDIA tweak their products towards AI applications, Intel too is set to announce a new family of AI processors specifically designed to handle machine learning workloads. A market that INTEL could rule just as well as it has ruled the desktop and servers processors market.

INTEL Financials

Current Price $53.7  
Market Cap $241bn  
Enterprise Value $256bn  
Total Cash $11.65bn  
Net Income $21bn  
P/E Ratio 11.8  
Forward P/E 11.35  
Dividend Yield 2.35%  
Sales Growth 12.9%  
Price to Sales Ratio (lower better) 3.10  
Price to Cash Flow Ratio (lower better) 7.47  
PEG Ratio (lower better) 1.53  
Debt to Equity (lower better) 35.91  
Stock Price 3 Year Change 68%  
Ratio to S&P 177%  

Intel's financials are robust even if its growth rate is a little slow. Whilst paying a decent 2.35% dividend, and is relatively cheaply priced at P/E 11.8. INTEL has maintained its sector lead due to its high spend on R&D i.e. this year INTEL will likely spend $14 billion or about 10 times rival processor manufacturer AMD.

Trend - INTEL's more conservative growth rate has not prevented INTEL from out performing the S&P by 78% as a stock that is firmly embedded in the Machine Intelligence Mega-trend with the stock price up 68% in 3 years. The stock appears to lead the general stock indices to some degree, i.e. topping and bottoming beforehand. So current action suggests the general stock indices will continue to rally.

Long-term Investing - Intel in many ways is similar to Microsoft and as is the case with the rest of the AI drivers should experience exponential earnings growth that results in stock price performance such as the 68% rise of the past 3 years. Coupled with the fact that Intel pays a decent dividend that increases most years.

Conclusion - INTEL should definitely form part of a long-term machine intelligence investing stocks portfolio.

Again this the whole of this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

Your analyst

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2019 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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