• Intel was co-founded in 1968 by Gordon Moore, who became famous for developing Moore’s Law, which states that the number of transistors in an integrated circuit tends to double every two years 
• The company went public in 1971 on the Nasdaq, under the INTC ticker 
• Intel is a component of the Dow Jones Industrial Average, Nasdaq-100, and the S&P 500 - three of the most followed stock indexes in the world
• Intel has a significant presence in the data center and cloud computing markets, where it provides processors and other components for server systems
• As of April 2023, Intel had a market capitalization of over $136 billion, making it one of the largest semiconductor companies in the world 
• Intel is known for its ‘Intel Inside’ branding, which it uses to promote its processors 
• Intel has a heavy focus on research and development, with numerous breakthroughs over its half-a-century-long history
• Intel Core is one of the most widely-recognized CPU brands owned by Intel
• Intel is also heavily involved in the development of open-source software through its Open Source Technology Center 
• Intel operates through a total of five business segments, namely the Client Computing Group, Data Center Group, Non-Volatile Memory Solutions Group, Internet Of Things Group, and Programmable Solutions Group

Intel’s stock has endured a rough year in 2022 as the company has lost around 30% of its market value over the past 12 months. Bearish conditions on the market weighed heavily on the already troubled technology giant, which slipped due to disappointing earnings releases over the year. 

For example, the last quarter of the 2022 fiscal year saw a drop off in almost all important metrics for Intel:

• Quarterly revenues fell by 31.6% to $14.04 billion 
• They reported a net loss of $664 million for Q4 2022
• Profit margin shrunk by a whopping 121% to 4.73% 

Intel’s financial woes can be attributed to the company falling behind in terms of managerial best practices. The company has also been plagued by workplace disputes and lawsuits, as well as external lawsuits from competitors for patent infringement, which weighed Intel down, which was already struggling to keep up with competing firms such as AMD and NVIDIA. 

The disarray of the global supply chains also dealt a blow to Intel’s bottom line. 

"All of the steps of our turnaround are underway. Investors are looking at it and seeing a bit of the green shoots, as we have described, starting to emerge in the Intel turnaround story." - Pat Gelsinger

While some may see this as the perfect recipe for disaster, Intel did get a lifeline with the CHIPS Act, which provides funding in excess of $280 billion to boost the United States’ ability to compete in the global semiconductor market. This could be the catalyst for Intel to ease its financial troubles and use its proprietary technology to get back into the global semiconductor race. 

Before investors choose how much to invest in Intel stock, if at all, it is crucial to understand the inherent advantages and disadvantages of doing so. While Intel may be in a precarious position at present, the company has a rich history and a wide array of products to fall back on. 

Pros

• Strong brand recognition - Intel is a globally recognized brand with millions of loyal customers, which makes it a formidable player in the global semiconductor market 
• Entry barriers - the global semiconductor industry is difficult to enter and highly competitive, which makes it very challenging for new entrants to compete 
• Dividends - Intel pays a healthy dividend ($0.12/share) relative to its ongoing financial issues
• Strong market presence - despite its current issues, Intel is still a formidable player in the global semiconductor market, with numerous patents at its side

Cons

• Manufacturing issues - Intel’s business depends on very complex supply chains, which can easily be disrupted and hurt Intel’s bottom line
• Geopolitical risk - most of the U.S semiconductor industry is dependent on Taiwan, which is under ongoing geopolitical threat from Mainland China
• Fierce competition - the likes of AMD and NVIDIA have been catching up with Intel and rapidly taking its market share
• Leadership changes - Intel has experienced numerous leadership changes over the past few years, which could hamper the company’s ability to rapidly react to changing market conditions

• Intel is one of the largest companies and most recognizable semiconductor brands in the world of computing
• The company is listed on the New York Stock Exchange under the INTC ticker 
• Intel has come under financial stress in recent years, due to fierce competition from AMD and NVIDIA
• Supply chain and internal operational issues have caused Intel to incur losses, which has severely impacted its stock performance
• Supply chain constraints caused by the Covid-19 pandemic and rising inflation have added to ongoing lawsuits, which has resulted in Intel losing approximately 30% of its market value over the past 12 months