Oh my gosh, Intel is in really bad shape, huh? It plunged 25%—is this a chance to buy in?
1. Sigh. I thought Google had it the worst, but Intel’s in even rougher shape. As soon as its earnings report came out, the stock plunged 25% in an instant, and it’s now down by half from its June high of 140. So the question is: is it a good time to buy?
2. There’s no doubt that Intel’s chips play an important role in the AI race, much like Micron and SK Hynix. But unlike Google, Intel is more cyclical—more like Micron. It can surge dramatically when the market is hot, rising nearly tenfold in a year, but it can also fall very hard, and it may take much longer to recover.
3. So if you’re aiming for a recovery in just a few months, like Microsoft, Meta, or Google, Intel may not be quite as reliable.
4. But if you’re investing for the long term and looking ahead to the next few years, I think INTC is worth considering when it dips. It still looks like a decent long-term investment. Xiao Qin has started building a small position, entering in three installments, with a three- or four-year horizon.
5. Here’s what Xiao Qin wants to remind you: with cyclical stocks like this, if the AI narrative holds up, the recovery could come quickly. But if the narrative weakens, the stock could stay near the bottom for three or four years. By comparison, Google’s stronger overall fundamentals could help it recover faster. Just look at Microsoft—it took about three or four months. So, besties, make a plan and invest strategically before you decide to buy~
1. Sigh. I thought Google had it the worst, but Intel’s in even rougher shape. As soon as its earnings report came out, the stock plunged 25% in an instant, and it’s now down by half from its June high of 140. So the question is: is it a good time to buy?
2. There’s no doubt that Intel’s chips play an important role in the AI race, much like Micron and SK Hynix. But unlike Google, Intel is more cyclical—more like Micron. It can surge dramatically when the market is hot, rising nearly tenfold in a year, but it can also fall very hard, and it may take much longer to recover.
3. So if you’re aiming for a recovery in just a few months, like Microsoft, Meta, or Google, Intel may not be quite as reliable.
4. But if you’re investing for the long term and looking ahead to the next few years, I think INTC is worth considering when it dips. It still looks like a decent long-term investment. Xiao Qin has started building a small position, entering in three installments, with a three- or four-year horizon.
5. Here’s what Xiao Qin wants to remind you: with cyclical stocks like this, if the AI narrative holds up, the recovery could come quickly. But if the narrative weakens, the stock could stay near the bottom for three or four years. By comparison, Google’s stronger overall fundamentals could help it recover faster. Just look at Microsoft—it took about three or four months. So, besties, make a plan and invest strategically before you decide to buy~
