Stocks that dipped irrationally in recent times are on the list of bargains. Value investors may take advantage of the panic, getting a better price paid. However, the investment will more likely pay off if the business has a positive catalyst.
Intel (INTC) is not in value territory even though the stock price is not at the lows seen in over a decade. The firm is not going to sell itself to opportunistic competitors. For example, on Sept. 27, 2024, Bloomberg reported that Arm Holdings (ARM) expressed interest in buying Intel’s product division. Before that, the company allegedly received an up to $5 billion investment offer from Apollo Management (APO).
Intel has a compelling PC CPU roadmap. Cash flow will recover the PC space. Also, the budget GPU market is potentially bigger than expected. Intel needs Arc Battlemage to appeal to new gamers who do not want to pay a premium for Nvidia (NVDA) mid-tier RTX GPUs.
Mobileye (MBLY), which is majority-owned by Intel, recently bottomed at $10.48. Once the stock chart downtrend ends, look for the company to launch products that replace its Lidar business. The firm announced on Sept. 9 that it would end the development of next-generation frequency-modulated continuous wave (FMCW) lidars in self-driving cars.
