(NASDAQ: INTC) was once the world's leading chipmaker. The company dominated the central processing unit (CPU) market and held lucrative partnerships with tech titans like Apple. However, a series of missteps and market changes have seen Intel's stock tumble 46% in the last three years.
In recent years, the company has posted multiple quarters of revenue declines alongside dwindling market share in the chip sector. Intel has finally returned to revenue growth, posting gains in its fourth quarter of 2023 and the first quarter of 2024. Yet, investors remain wary of its stock. Rising competitors like Nvidia and Advanced Micro Devices threaten Intel's future in budding markets like AI.
However, the company seeks to separate itself from these chipmakers by adopting an internal foundry model similar to how Taiwan Semiconductor Manufacturing Company operates. It'll take time for Intel to see significant earnings growth from this transition, but it could be worth investing in the company at one of its lowest positions to profit from its potential comeback.
Source Fool.com