INTEL: Partnership with Nvidia brings us +13%!

On September 19, the shares of the US chip company INTEL made an enormous "leap in the air" with a daily performance of +30% at the peak (USD 32.38). We also informed you about this promptly as part of our e-mail update service. We had set a sell limit at USD 29, which was implemented last Friday at the opening price of USD 31.78 (FX: 0.7925), which was much higher than planned. After all the turbulence at INTEL, we can now look forward to a gain of +13%. In US dollars it would have been +26.3%, and +59.2% on the purchase at USD 19.96! This "jump" was due to the fact that the ailing chip pioneer INTEL is receiving billions in support from its long since more successful competitor Nvidia; specifically, Nvidia has bought shares worth a high USD 5 billion (at a price of USD 23.28, nota bene). It is also important for INTEL that a technical cooperation is to take place. Both companies want to develop chips together. Is INTEL now "off the hook" with this partnership? Has the US government perhaps been actively involved in this deal? However, we are somewhat surprised by another statement made by the Nvidia boss at a press conference: "Following the announcement, there is no commitment to use INTEL's contract manufacturing capacities." However, this is precisely one of INTEL's main goals, to become a contract manufacturer for other chip companies; so far, potential customers, apparently including Nvidia, have been hesitant. We are aware that there is still a lot of upside potential for INTEL shares if the targets are achieved. But without a dividend and some remaining uncertainty, we are not unhappy about selling the position for the time being. Patience usually pays off on the stock market after all!

INTEL is listed on the NYSE in New York under the symbol INTC, the security number is 941,595, last price approx. USD 29.02.