00:00 Speaker A
This Intel quarter, market loves it. Do you love it?
00:03 Tom
Um, as a premium seller, uh I didn’t love it that much. It got a little outside the range. Three standard deviation move, a little heavy for me. But um, uh it’s been a great trading vehicle for the last two hours. Uh, you know, I mean, it really depends. If you’re if you’re long Intel, yeah, you sure you love it, but if you’re an option trader, a little bit outside the range.
00:23 Speaker A
Tom, this uh seeing Intel rally from uh the depths of hell last year, we were all questioning if they were even going to be in business anymore. And this was not on my bingo card coming into this year. I mean, do you just, if one has been long Intel, really what has turned into one of the hottest trades of this year, do you just stay long because of the momentum?
00:43 Tom
Well, I think you know, going back, a lot of us have been, you know, we got stuck long Intel for about what felt like a decade. And I think the stock probably traded between 21 and 28 for what felt like 10 years. And and I think for most of us that were choking on Intel for so long, when we finally got a chance to get out of it, um we we we jumped at that opportunity. I think if you’ve been long Intel since since kind of the bailout, uh I would say you pretty much have to stay in because if you were going to get out, you probably would have got out at 30, 40, 50, whatever. I mean, there’s no way you’re holding it till 80. So at this point, you might as well just go in for stay in for the ride.
01:21 Speaker A
So true. Uh, Ines, let me get over to you here. And you know, this move in Intel, it’s not it’s not completely isolated because we are on a record-breaking streak for the Philadelphia Semiconductor Index, better known as SOX. You know, if you go to the Alfines homepage right now, really awesome uh story by our very own Jared Blikre. I believe Intel’s stock price has taken out the .com high. Uh, it’s just it’s been amazing to see this epic rally.
01:46 Ines
Yeah, chips have really been the ones that have been uh leading this market. And what a change of fortune really for Intel. Remember that this was a Dow component at one time, back in 2024, it got replaced by Nvidia. And if you also look at Intel and how the stock has performed, I did a little chart of how the stock performed after the US announced its investment in Intel. It’s up 250% since then. It was at around $23 a share when that happened. So certainly, uh a change of fortune here.
02:13 Ines
But look, this also speaks to the entire space of what’s happening in the entire space. and you have that uh upgrade from AMD, uh uh or for excuse me, DA Davidson on AMD, basically talking about CPUs. Now this is supposed to be the next big bottleneck because of CPUs and the demand because of AI uh agentic AI.
02:40 Speaker A
Ines, this is one big bubble, one big SOX bubble, Ines.
02:43 Ines
Well, look, um DA Davidson thinks that this is going to continue. I mean, they’re they’re looking a little uh uh there, uh Gil Luria, excuse me, basically is saying that this is the next uh big bottleneck and you are going to see this is just a precursor for what AMD is going to be announcing when they report on their quarterly results. I would note, it’s not just CPUs with uh with Intel, it’s also their advanced packaging. They remember, we talked about this a couple months ago that uh some strategists were actually really bullish on this advanced packaging and something that Nvidia had also noted.
03:19 Speaker A
I do remember Ines, I remember every single conversation we have had here on Opening Bid. Like I I just takes all this home. Brooke, what are you looking at uh on uh on Intel?
03:27 Brooke
I mean, what we did see also is Evercore ISI upgrading the stock to outperform this morning. That’s certainly adding to the momentum that we’re seeing this morning opening up up 26% at the open. The admitted though here, they said Intel is already up 100% year to date. We might be a little bit behind on our timing. It’s not optimal. But similar to what Ines was saying, is they think that this has more room to run. Right now their price target is $111, they’re only sitting at $84 right now. And I think that this is really a story. I know Ines had mentioned about CPUs. They’re calling this the CPU Renaissance, saying that this is the fastest growing AI workloads need a lot more CPUs.
03:59 Brooke
And soon we’ll see this flip, which not just Evercore, but other analysts on the street wrote, between CPUs and GPUs ratio turning around from 1 to 8 to 8 and 1. And so this could really be the beginning of momentum. And on top of that government stake that uh the government took in Intel, you also have these massive partnerships that the company has uh made an announcement over the last year with. That includes Google. That also includes uh Elon Musk’s uh Terrafab facility as well.
04:26 Brooke
So this is clearly gaining a stride here and and like Tom was saying too, if you’re holding it now, it looks like Wall Street is optimistic there’s more room to run here.
04:36 Speaker A
Yeah, if you’re not tracking that GPU to CPU ratio uh out there, I mean you got to do it, Brooke, that’s a good point.
