INTEL: Pat Gelsinger buys shares!

There is much to suggest that the bottoming out of INTEL's chip stock is behind us. This is also supported by a document filed with the Securities and Exchange Commission (SEC), according to which INTEL's CEO, Pat Gelsinger, has once again purchased shares in the company. The family trust now owns 18,700 shares and he holds another 53,000 shares in his personal account, as well as 361,000 shares through other trust companies, so it adds up. Since our purchase at USD 26.71, we too are and remain convinced of INTELS' long-term strategy and transformation! Although the dividend cut was unpleasant, this "prudent" - and temporary - allocation of capital should make sense to powerfully implement the IDM 2.0 strategy. IDM stands for "Integrated Device Manufacturing" and thus for companies that carry out every step of the chip manufacturing process themselves. The stock benefited above all thanks to good news: For example, new server products are to be launched on the market earlier. In addition, INTEL is planning a more sophisticated manufacturing technology and, associated with it, a chip with many more computing cores and more speed. Management specified that INTEL has already started sending samples of a chip called "Sierra Forest" to customers; this specific chip is intended for cloud computing workloads and it has an enormous 144 processing cores. This early switch to the so-called 18A process technology is extremely positive. It allows INTEL to make up for lost market share and strengthen its dominance in servers, one of its most profitable channels.

Nevertheless, the short-term conditions in the global PC, TV and smartphone markets remain "mixed". In some cases, excess inventories are still being run down. But the worst should be over. The INTEL share is also gradually working its way forward. Our price target (still) stands at USD 35.50!