{"id":386,"date":"2024-12-05T15:00:53","date_gmt":"2024-12-05T16:00:53","guid":{"rendered":"http:\/\/www.pacific-hydro.com\/?p=386"},"modified":"2025-02-28T23:01:14","modified_gmt":"2025-02-28T23:01:14","slug":"warning-signs-flash-for-intel-as-stock-rates-zero","status":"publish","type":"post","link":"http:\/\/www.pacific-hydro.com\/index.php\/2024\/12\/05\/warning-signs-flash-for-intel-as-stock-rates-zero\/","title":{"rendered":"Warning Signs Flash for Intel as Stock Rates ZERO"},"content":{"rendered":"
I\u2019ll admit, this is a bit geeky\u2026<\/p>\n
But the greatest <\/em>thrill in the life of a systematic investor comes when you least expect it \u2014 when one of your own systems surprises even you<\/em>.<\/p>\n Because let\u2019s face it, that\u2019s the whole point of all the hard work.<\/p>\n With Green Zone Power Ratings, we\u2019re building a system that can process more data, project more accurately, and come to more balanced conclusions than any individual investor ever could.<\/p>\n If that means the results are surprising? Then so be it.<\/p>\n And right now, my ratings system offers no greater surprise than Intel (Nasdaq: INTC<\/span><\/span><\/span><\/span><\/span><\/span>). Titan of the semiconductor world, with 78% market share in the PC world \u2026 Intel scores a big, fat, ZERO:<\/p>\n I\u2019ll admit \u2014 such a low score for such a dominant tech company surprises even me. And I couldn\u2019t be happier about it!<\/p>\n After all, my Green Zone Power Ratings system isn\u2019t designed around companies. It\u2019s designed around the investor<\/em>. And time after time, we keep finding that the \u2018best\u2019 companies in the world just aren\u2019t the best investments for folks like you and me.<\/p>\n So the score above reflects the company as an investment<\/em>. It tells you how shares of INTC are likely to perform, and whether you should be buying them.<\/p>\n Obviously, you shouldn\u2019t.<\/p>\n But in Intel\u2019s case, we should zoom out to take a look at the bigger picture with INTC \u2026 and see whether share prices are headed as low as the stock\u2019s rating\u2026<\/p>\n I really <\/em>cannot stress enough how Intel was practically the \u201cGolden Boy\u201d of the first big computer boom.<\/p>\n Intel\u2019s founders were a group of defectors from Fairchild Semiconductor \u2014 including none other than Gordon Moore, father of \u201cMoore\u2019s Law.\u201d These men were visionaries who could see the future of computing, decades in advance.<\/p>\n Intel delivered the world\u2019s first commercial microprocessor back in 1971, developed a lasting partnership with IBM, and became a shoo-in to dominate early personal computing in the 1990s.<\/p>\n Intel had it all. For decades, they maintained a dominant market share across most sectors.<\/p>\n But at the same time, Intel has never really innovated beyond that core vision of producing cutting-edge CPUs.<\/p>\n Indeed, this is something my Green Zone Power Rating System identified with Intel very <\/em>early on. INTC\u2019s rating first fell out of bullish territory all the way back in 1999, dropping to 59 out of 100.<\/p>\n Intel\u2019s share price soon followed suit, sinking 83% from Sept. 2000 to Sept 2002.<\/p>\n After the dotcom-era crash, Intel made multiple forays into mobile devices \u2014 each time delivering unimpressive results.<\/p>\n After spending $10 billion on a new mobile division back in 2020, Intel ultimately sold its 5G business off to Apple.<\/p>\n More recently, Intel completely missed the bus on artificial intelligence (AI). Despite the company\u2019s unequivocal dominance in the CPU space, it never became a member of the \u201cMagnificent Seven,\u201d and instead INTC\u2019s shares sank 43% over the last year.<\/p>\n Finally, we come to what is arguably the greatest financial disaster in Intel\u2019s long and storied history\u2026<\/p>\n Back in 2005, Intel CEO Paul Otellini pushed the company to buy an upstart competitor named Nvidia (Nasdaq: NVDA<\/span><\/span><\/span><\/span><\/span><\/span>) for $20 billion.<\/p>\n At the time Nvidia was still primarily manufacturing graphics cards (GPUs) for video gamers.<\/p>\n And for some reason, the greatest CPU innovator in history didn\u2019t seem to see the value in buying up Nvidia for $20 billion.<\/p>\n It\u2019s one of the great \u201cWhat If\u201d moments in modern technology.<\/p>\n Because over the last 19 years, Nvidia\u2019s value has shot up from $20 billion to more than $3.36 trillion.<\/p>\n You could argue that Intel\u2019s failure to follow-through on an Nvidia acquisition is the single worst blunder in the company\u2019s history.<\/p>\n But once again, we\u2019re investing in the stock<\/em>, not just the company.<\/p>\n So just a few years later in 2009, Intel\u2019s rating once again turned bullish \u2014 and shares rallied a staggering 475% over the next decade!<\/p>\n As you can see, there\u2019s a vast difference between the Intel you read about in the headlines \u2026 and the way Intel\u2019s shares perform inside your stock portfolio\u2026<\/p>\n At any given time, mainstream financial media might be heaping praise on Intel\u2019s newest generation of cutting-edge chips. Meanwhile, INTC\u2019s shares are plunging.<\/p>\n This disconnect comes up more often than you might realize. And it can cost unwary investors a fortune.<\/p>\n That\u2019s the whole reason I created my Green Zone Power Rating system in the first place, to help you cut through the hype and discern whether a given stock is actually <\/em>worth your time and investment.<\/p>\n And right now, Intel is showing our lowest possible rating at 0 out of 100. That\u2019s as clear an indication as we could possibly get to steer clear of INTC.<\/p>\n Headed into 2025, we\u2019re going to keep a close eye on Intel here in Money & Markets Daily<\/em>.<\/p>\n Partly due to our own morbid curiosity, but also because the company\u2019s rock-bottom score seems to indicate a potential disaster ahead for at least one major tech giant\u2026<\/p>\n To good profits,<\/p>\n<\/p>\n
Intel\u2019s Tragic Dominance<\/strong><\/h2>\n
A Tale of Two Intels<\/strong><\/h2>\n
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