INTEL: OUR PICK AS THE SHOVEL
Hello traders,
Happy Turn-Around Tuesday for those who celebrate.
Recap yesterday and today’s trades by clicking here.
THE BACKGROUND
Intel has been the talk of the town ever since last year.
The price flirted to 130s and traded in the double digits today at one point closing at 107 dollars.
This newsletter thinks Intel is an important component of the next few years of the race.
Context: The newsletter was long AMD as I believed AMD had more structural tailwinds compared to Intel back in March 2025.
Both Intel and AMD have outperformed Nvidia in the last year or so which had a stellar run up to then (there is such a thing as base effect etc I know)
But why change from team AMD to Intel right now Algo?
I thought you would never ask
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PANTHER LAKE: A TOUR DE FORCE
Intel claims Panther Lake is the first SoC built on the 18A platform. Performance is about 15% better than its predecessor at the same power efficiency. Density is about 30% better density over Intel 3.
In layman terms, if the 18A yield and volume keeps ramping up, Intel can be considered a serious contender to TSMC.
DATA CENTERS: DO NOT WRITE ME OFF
Intel Q1 report was interesting because data center revenues went up to USD 5.1B, roughly 22% up over the past year.
This is important because most analysts had written off Intel’s data center revenues as they were considered far behind in servers.
As long as the Servers keep chugging on and generate profits for Intel that would provide Intel with cashflow as the foundry production ramps up.
INTEL INSIDE: MENTAL OUTSIDE?
Intel is now considered as protected infrastructure ever since Trump decided to invest in it at 20 dollar price. On the flip side, the stake of government is passive and if Dems win the next election, they can divest from it in no time.
However, this gives a slight edge to Intel in my opinion.
Best case, Intel becomes a Western Foundry alternative to TSMC, worst case the subsequent government washes off their hands calling it a dirty investment for insert reason here
I can go on and on about 14A and wafer volume and go all Anandtech on you guys, but the sun is out, so I have to head out.
I recommend to swap the AMD exposure for Intel. Timeline for this investment is north of two years but south of five years in our current understanding.
As always, subscribers will get updates on the positioning in the discord.
That’s about it from me.
-Fin