24/7 Wall St. Key Points:
- Intel Corp. (NASDAQ: INTC | INTC Price Prediction) is still a target of takeover speculation even though no official deal has been revealed since recent allegations of a “mystery buyer” prompted a roughly 10% stock surge.
- Though Intel’s continuous challenges and competition from Advanced Micro Devices Inc. (NASDAQ: AMD), potential bidders like Qualcomm Inc. (NASDAQ: QCOM) or private equity groups are said to be interested in Intel’s design capabilities and market position in laptops and PCs.
- Whether Intel turns around is anyone’s guess. Rather than try to read the tea leaves, smart investors are loading up on “The Next Nvidia” stocks instead. Click here to learn more.
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Transcript:
[00:00:04] Douglas McIntyre: Every single day, things get worse at Intel. There’s just like, you could go back hundreds of days, and every day it gets worse. Now, I believe there’s a point at which because of the brand and some of the products they’ve got, they do have market share in certain parts of the tech world, that it will be bought.
[00:00:26] Douglas McIntyre: I think it’s not a fixable company. So I’m looking for a takeover there. What do you think?
[00:00:33] Lee Jackson: Well, and, you know, we talked about this back in the fall, and so the rumors are starting to come around again. You know, and back in the fall, it was Qualcomm. You know, they were interested in some of their designing, you know, functions and that, and then, then they were, you know, there was chatter that there was maybe a merger coming.
[00:00:51] Lee Jackson: So yeah, I don’t, I don’t think for a moment that private equity isn’t trying to line this up because, you know, it is still Intel and they have people there that are good and they have a base of products that go into laptops, go into PCs that will always be used, even though AMD is, you know, taking a lot of that business.
[00:01:13] Lee Jackson: So yeah, I think it’s totally possible that you see deal within the next year or so.
[00:01:20] Douglas McIntyre: Well, as we’re talking, just so you know, I happen to have looked up Intel, it is jumped today by almost 10 percent on news within the last two hours that there is a mystery buyer. Now, I don’t think there’s going to be a deal, but it, what it does is it, it certainly confirms your idea that there’s a, there are a lot of people thinking about this.
[00:01:47] Douglas McIntyre: It is, it is not clear here based on this report that they’re not saying who it may be or who it may not be. I doubt that there’s a deal in the office, probably a rumor, but I think it confirms your thought and that is, is that Intel is viable by somebody who knows what they’re doing, they will probably come in and slash costs.
[00:02:10] Douglas McIntyre: You probably have 20, 000 people lose their jobs, but Intel to me is worth looking at as a stock based on that speculation. Now, if you’re not a speculator and you don’t have some, you know, money off to the side to play dice or poker with don’t do it now, I would certainly, if the stock drops back after this rumor, it’s up 10%.
[00:02:36] Douglas McIntyre: Now, if it drops back, I would look at it at that price. I don’t know that I will look at it. I don’t think I’d buy after the rumor run up, but if there isn’t a wire. And this stock slides back. I suddenly would look at it and say, you know, there’s a reason for that speculation.
[00:02:56] Lee Jackson: Yeah, and the thing is, you know, and you and I have been around long enough to know that there just isn’t a guy like Andy Grove sitting in the office, you know, there, that guy’s just not there anymore. You can bet that some there’s either private equity people or somebody who are like, look, if we and Qualcomm may still be the suitor, they could very well combine because they have totally different products, you know, and, and Qualcomm was interested in their their design process.
[00:03:26] Lee Jackson: Let me look at this again. Yeah, they liked the design business. they had so maybe it’s going back to Qualcomm And but it’s either that or private equity because I can’t think of another big chip company that would do that. Do you?
[00:03:41] Douglas McIntyre: No, I don’t think so.
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