Let’s start of with the basics and normie shit.
Intel has been getting curbstomped by Semi-conductor industry darlings AMD and NVidia. Apple has moved away from Intel with their new M1 cpus and INTC looks poised for rough times ahead.
But, the market may be overreacting as Intel’s stock price is suffering so badly that it’s P/E ratio is sitting at a mere 9.09 despite the Semi-conductor industry’s average P/E of over 30, making it potentially severely undervalued. Especially since Intel remains an industry giant and has also recently stepped foot into the GPU industry. More excitingly, intel is planning on taking Mobileye, a market leader in driving assistance and self-driving cars (comparable and competitive with Tesla), public, with Intel intending to retain a majority stake. So perhaps the future is not so dark.
Grabbing Pat Gelsinger at the beginning of 2021 was also a great move as he is one of the best CEOs America has to offer, fit to lead Intel into a new age.
So far so boring. Okay so INTC may be a value buy. whatever, value is for shitters.
WELL HERE COMES THE SHITPOST DD. IF YOU GET OFFENDED BY SOME OF THE POTENTIALLY POLITICAL SHIT IN THE FOLLOWING SHIT DD YOU DON’T HAVE THE GRINDSET, THE POLITICS ARE TANGENTIAL, THE GAINS ARE OUR GOAL.
A fact that many investors fail to consider is that INTC is actually an industry rarity. AMD, Nvidia, Qualcomm and Apple are all FAB-less, meaning they outsource their production to semi-conductor Foundry giants, with the majority utilizing TSMC (Taiwan Semiconductor Manufacturing). Intel on the other hand fabricates their own chips, and are in fact investing $20 billion on explanding their production by constructing new chip factories in Arizona.
Think South China Sea, Supply Chain issues, America vs China trade-war Import taxes and the China – Taiwan One China Fiasco.
We’ve already seen the amount of damage supply chains can do to industries, and the Semi-conductor industry is no different. With the majority of tech companies previously mentioned not having in-house Foundries to fabricate semi-conductors, should any damage/issues arise for TSMC the BIGGEST FOUNDRY in the world, massive costs will be incurred on everyone of these companies.
Imagine for a second that the American Chinese cold war (that we all know is happening) escalates into a conflict in the South China Sea. Supply Chains from TSMC will be completely severred or atleast severely impacted, meaning that a targetted supply chain issue will begin to occur in the world, negatively impacting ONLY FAB-LESS semi-conductor companies. An issue that Intel does not suffer from.
Now imagine for a second, another scenario in which China does take over Taiwan. (Yes, shit idea I know.) It is HIGHLY likely that America will impose heavy trade bans/import taxes on China as a way of economic retaliation (We’ve seen this already, and other shit like the death of Huawei’s overseas presence). Importing from TSMC becomes unprofitable or nigh-on impossible. China may also limit exports from key companies as a way of retaliation as well. Overall, the situation because much more difficult for Foundry-less companies. AND as a side-effect, Intel becomes an American Industry Patriotic Figurehead and receives Government funding, turning around its downtrend and SKYROCKETING to market leader territory, perhaps even becoming an international Foundry Giant, filling in the void left by TSMC’s departure.
NASDAQ:INTC TO THE FUCKING MOON (Riding on the back of a cruise missile)
INTC is potentially undervalued, but that’s not the point. The point is that China and America are going to war, and it’s going to shatter the Taiwanese Semi-conductor supply chain that Fab-less Semiconductor companies rely on. INTC has local and American foundries, therefore it will not be affected, allowing it to boom should conflict arise. War profiteering has never been easier.
(Please don’t be offended at the THOUGHT that China might take over Taiwan, this is a THEORY and I DON’T SUPPORT IT, BUT IT MIGHT HAPPEN.)
Submitted January 21, 2022 at 06:52AM by BeeBaBoop
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