Nvidia is replacing Intel on the Dow Jones, but here’s what you need to pay attention to. As a long-term value investor, I’ve been investing in Nvidia since it was only 40 cents.
While Nvidia remains an excellent stock, if you prefer to buy stocks when they’re undervalued, you need to pay attention to things that don’t make big headlines.
Nvidia Replaces Intel On The Dow Jones – Is Intel Doomed? My Video Reveals All
A few months ago I posted a video on Instagram stating that I was eyeing buy Intel stock as its price drop to lower key psychological levels. People laughed at me in the comments because its stock price was going down while other AI stocks were booming.
I justified my position by explaining that Intel was the only US chip designer that also fabricated its own chips, and that as a result it was strategically important to the future of the US.
I stated that Intel were too important to fail, much in the same way that some banks were too important to fail during the housing crisis in 2008.
I went on to mention that because Nvidia doesn’t fabricate their own chips, they’re expected to be supply constraint creating an opportunity for its competitors.
However, there is an American company (Intel) that does fab their own chips and right now America is critically dependent on international chip facilities like TSMC in Taiwan.
Given the geopolitical tensions in the region, the US government launched the Chips Act to increase the US semiconductor capacity. They are investing over $280 billion in it!
Here’s where it gets interesting… not only are Intel fabricating chips for themselves but they’re also planning to fabricate chips for their competitors. So given that Nvidia is supply constraint, it seems likely that they and AMD might look to Intel in the future.
Even if Intel screws up in the future, the government will likely bail them out so there could be an asymmetric risk in investing in Intel at low prices.
What Does This All Mean For Investors?
The future of Intel looks bright but Wall Street investors typically rely on lagging indicators, buy the rumour and sell the news.
That’s probably why market sentiment has still not caught up with this information which means Intel’s stock price could actually drop to key psychological levels before potentially shooting back up in the future.
Intel’s Excellent Quarterly Results:
Now hot on the heels of Intel posting excellent quarterly results comes a story claiming what I predicted months ago. That Intel is too big to fail and that the U.S. Government is discussing plans on how to help Intel beyond the $8.5 billion Chips Act funding that they are scheduled to get by the end of 2024. Take a look at Intel’s quarterly results here.
And we finally have proof that Intel’s too big to fail.
If you’ve been looking to invest in AI stocks without paying the expensive AI hype prices, you’re in the right place because I’m Kiana, the Invest Diva, 8-figure investor, here to spill what Wall street bros don’t want you to know.
If you’ve been following me for a while, you’d know that I’ve been buying the Intel lows.
The first price level I identified on my TradingView chart back then was $19, which was fulfilled in August, and my next one is $13.66.
I continue to hold my long-term bullish position on Intel despite the fact that they’re being replaced by Nvidia in Dow Jones.
My timeframe for this investment is 5 years+ and I will potentially take partial profits at key resistance levels including $46, $56 and $68.
Remember: You should ONLY invest based on your risk tolerance and your timeframe for reaching your portfolio goals.
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If you liked this blog post about ‘Nvidia Replaces Intel In Dow Jones – Is Intel Stock A Buy Or A Sell?’ then you will love my latest blog post about ‘Supermicro Stock Price News – SMCI Stock In Big Trouble? What You Need To know!’
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#1 Best Selling Author. Helping you accelerate your retirement with Triple Compounding™ Former engineer on a mission to help 1 million households take control of their finances. Founder & CEO of Invest Diva.