If you have a personal computer, there’s a good chance an Intel chip is powering it. But does that mean Intel stock is set to outperform in 2023?
Intel is one of the world’s largest technology firms and a leader in the semiconductor industry.
As an investor, it pays to be informed about Intel’s performance and outlook for 2023. And one of the best ways to do that for Intel stock (or any company, really) is to check out its Stock Power Ratings.
Here is a comprehensive overview of Intel’s business, its outlook for the upcoming year and how it stacks up within our proprietary — and powerful — system.
Intel’s Business Overview
Intel designs, manufactures and sells computer chips and other related components. Its products are used in consumer electronics, data centers, laptops, desktops, servers and more.
The company offers a wide range of products including microprocessors, motherboards, graphics cards, storage solutions, and networking products — just to name a few.
It also provides software services to support its customers in development operations and other technical areas.
Intel has been a tremendous success over the past few years due to high demand for its products from both consumer and enterprise markets. But the semiconductor shortage hammered its business in 2022.
Intel reported $15.3 billion in revenue for the quarter ending on September 30, 2022. That’s 20% lower than the same quarter in the previous year.
Gross profits also decreased almost 40% in $6.5 billion in that quarter.
In terms of its financial outlook for 2023, analysts expect Intel to post revenues of around $99 billion, while net income is expected to reach $25 billion.
This growth will be driven by increased demand from both consumer and enterprise markets as well as strong sales of its core products.
In addition to this Intel also stands to benefit from investments made into artificial intelligence and 5G technologies which should help drive further revenue growth over the next three years.
But Intel stock is struggling as the semiconductor industry tries to find its footing.
Let’s see how it scores within our system.
Intel Stock Power Ratings
Intel stock rates a “Bearish” 26 out of 100. That means our system expects the stock to underperform the broader market over the next 12 months!
INTC’s Stock Power Ratings in January 2023.
While INTC’s revenues have decreased compared to 2021, its still a high-quality stock with a rating of 71 out of 100. Semiconductors are Intel’s moneymaker, and demand isn’t going to fall off in the digital age. Intel’s business is still in a great spot, even if its bringing less money in.
But its stock performance over the last year shows why Intel stock scores a 4 on our momentum factor. INTC has lost 46% of its value over the last 12 months!
And even after the sell-off, Intel is still a massive company with a market cap of $118 billion as I write. Large-cap stocks like this don’t get a boost unless investors pour a lot of money into the asset.
Bottom Line: Intel is a semiconductor giant that isn’t going anywhere. But Intel stock is set to not go anywhere in 2023 either, according to Stock Power Ratings.