Which technology company deserves a spot in the “Magnificent Seven”? A great candidate is chip-making giant Intel (NASDAQ:INTC). Investors should prepare for INTC stock to provide magnificent returns in 2024 as $50 will be distant memory soon.
It’s amazing to consider that Intel was a target of derision just a year ago. Now, the company is poised to become a darling of the market. Before the year is over, Intel stock should break through its prior all-time high of around $69. Will you be in the trade, or just watching the rocket ride from a distance?
Good News for INTC Stock
Is it positive for Intel when other technology businesses succeed? The answer is yes, as a technology company’s optimistic outlook probably bodes well for chip-market demand in general.
For example, Taiwan Semiconductor (NYSE:TSM) recently forecast that its revenue growth, percentage-wise, will be in the low- to mid-20s. That’s above the expectation of approximately 10% growth for the global chip market.
Computer server manufacturer Super Micro Computer (NASDAQ:SMCI) significantly hiked its forward revenue and earnings guidance. In addition, OpenAI CEO Sam Altman reportedly plans to build a network of chip-manufacturing factories.
Don’t focus on the prospect of increased chip-market competition. Instead, consider the implications of multiple technology businesses preparing for a robust tech-components market.
It all adds up to a positive outlook for Intel stock. Altman wouldn’t prepare to build chip-making plants if the market wasn’t robust. Taiwan Semiconductor and Super Micro Computer wouldn’t provide optimistic forward guidance in an unfavorable tech-components market. The bigger-picture considerations seem to bode well for Intel.
Intel Could Thrive in the Automotive AI Chip Market
Not long ago, technology’s top innovators featured their next-generation products at the 2024 Consumer Electronics Show in Las Vegas. There, Intel highlighted its plans to bring artificial intelligence personal computer features to cars.
Putting AI PC chips in vehicles might sound strange, but it’s actually a great opportunity for Intel. Currently, there’s a burgeoning market for “software defined vehicles” in the automotive industry.
Intel’s management takes this automotive trend seriously. Jack Weast, vice president and general manager of Intel Automotive, stated that Intel is “taking a ‘whole vehicle’ approach to solving the industry’s biggest challenges.”
This, presumably, includes “[d]riving innovative AI solutions across the vehicle platform.”
It also evidently includes putting Intel’s AI chips (or a modified version of these chips) in vehicle systems. At the 2024 CES event, Weast explained how AI PC components, of all things, could be a game-changer in the automotive market:
“This new line up of products brings the best of the AI PC, and all the reliability of the data centric into the vehicle so automakers can evolve their architecture away from fixed function to software defined and dynamic architectures going forward.”
Intel Stock: Are You Ready for All-Time Highs?
A year ago, Intel stock seemed like dead money. Now, Intel has strong comeback potential as a premier AI chip maker. This could include AI PC chips for cars as Intel makes an ambitious move into a new and intriguing market.
Moreover, as other companies expect a high-growth technology-parts market, this only adds to the bull case for INTC stock. So, when the Intel share price is near $50, that’s the time to get in. The next stop is the previous all-time high of approximately $69, and the sky’s the limit after that.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.