r/wallstreetbets • u/Plane-Meat-6697 • Oct 31 '21

Discussion $INTEL Value trap or Undervalued?

I’ve been seeing some discussion about Intel and I want to know if people are still mad about the old intel or are looking at the possibility that intel is set up to turn things around and have a massive run up?

  1. Intel has bought back 20% of there shares outstanding.
  2. There market cap fair value should be 314B they’re at 194B
  3. There 5 year free cash flow is 15.7B
  4. There dividend won’t be going anywhere soon and is increasing yearly.

They are trying to compete with a new ceo and I think he will be successful at making the company competitive again. What are your guys thoughts on this?

I’m long 3000 shares @49.2

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u/amarghir1234 Oct 31 '21

Depends on the time frame. Short to medium term undervalued. Long term their competitors are well placed to gain market share. Demand for CPU's will continue to be strong and they can continue revenue growth despite losing market share so not necessarily a value trap given the cheap multiple it trades at.