Ignore Intel: Here Are 3 Better Stocks
Value investors may hold chip giant Intel (NASDAQ: INTC) for their tech sector exposure. At first glance, that would seem to be smart move. After all, Intel has a dominant market share in PC and data center processors, and these end markets should benefit from work-from-home trends as well as cloud, AI, IoT, 5G and other next-gen tech applications. Meanwhile, the stock trades at just 9.4 times earnings and yields 2.75%.
However, Intel plunged over 10% after its recent earnings call last week, delivering results that showed falling margins in its data center group. Intel is currently under fire from rival Advanced Micro Devices, which has used Taiwan Semiconductor Manufacturing as its outside foundry to surpass Intel in producing 7nm processors. Intel has fallen behind in its own in-house manufacturing process, and management was tight-lipped as to whether Intel would eventually have to outsource its chips to TSM in order to catch up.
Basically, Intel is in a tough spot right now, and its turnaround, if it's coming, could take a while. However, for value investors interested in the technology space, the following three stocks look like better bets today, with more near-term catalysts.
Source Fool.com
