Intel versus Advanced Micro Devices and Nvidia
Both analysts and Intel’s management expect to see earnings and cash flows, especially free cash flow, fall precipitously over the next few years. However, the primary reason is because management has decided to take aggressive action to catapult long-term future growth. Consequently, Intel management announced that capital expenditures will increase significantly, close to double, in 2022 to position for future growth. This will have an immediate negative impact on free cash flow. Management is very confident that this aggressive stance will bear long-term fruit. Leading analysts – of which there are 41 reporting to FactSet – are not as confident. With this video I provide a comprehensive look at Intel with a focus on fundamentals, primarily future expectations over the next few years. As an additional bonus, I will take a quick look at Advanced Micro Devices and Nvidia. Although Intel is expected to have weak cash flows and earnings over the next few years, Advanced Micro and Nvidia appear overvalued at current levels.
In the video I will go over Intel (INTC), Advanced Micro Devices (AMD) and Nvidia (NVDA).
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Disclosure: Long INTC at the time of writing.
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.