Is Intel Corp. (INTC) the Best Data Center Stock to Buy According to Billionaires?

Ladies and gentlemen, buckle up! We're diving headfirst into the world of data center stocks, and there's one name that keeps popping up: Intel Corp. (INTC). Is it the best data center stock to buy according to billionaires? Let's find out!

First things first, Intel is a blue-chip stock, a member of the Dow Jones Industrial Average, and it's been around the block a few times. But here's the thing: Intel's stock has been on a rollercoaster ride, and it's currently trading at its lowest level since 2013. So, is this a buying opportunity or a trap?

Let's break it down:

1. Market Position and Resources: Intel is the dominant supplier of central processing units (CPUs) for consumer PCs, and it has vast resources with $54 billion in trailing-12-month revenue. This financial strength positions Intel as a formidable player in the data center market.

2. Growth in Data Center and AI Revenue: Intel's data center and AI revenue grew by 9% year over year in Q3. While this growth rate is modest compared to competitors like Advanced Micro Devices (AMD), which reported a 122% year-over-year increase in its data center segment, Intel's established market presence and revenue base provide a solid foundation for future growth.

3. Market Share and Performance: Intel's share of the x86 CPU market was 62% in Q3, according to Statista. This market leadership gives Intel a significant advantage in the data center sector, where performance and reliability are critical. However, AMD's Ryzen and Epyc server CPUs rank at the top of Passmark Software's benchmarks on performance, indicating that Intel faces stiff competition in terms of chip performance.

4. Investment in Manufacturing: Intel is investing heavily in its foundry business, which it launched in 2021 to drive growth. The company is working to turn its foundry business into an independent subsidiary, which could help better serve customers and allow for outside funding. This move could position Intel as a leading AI chip manufacturer, profiting from increased demand across the industry.

5. Government Support and Funding: Intel has received significant government support, including a $7.86 billion grant from the CHIPs Act. This funding will help Intel expand its foundry capacity and compete more effectively in the data center market. The company's Ohio plant, for example, is expected to become the AI fab of the nation, further strengthening its position in the AI and data center sectors.

6. Innovation and New Products: Intel has new Core Ultra processors and the upcoming Panther Lake chips designed to take advantage of AI PCs. These innovations could position Intel for a comeback in the consumer market and enhance its competitiveness in the data center sector. However, AMD is also innovating with a pipeline of new chips, indicating that the competition will remain intense.

7. Valuation and Growth Potential: Despite its challenges, Intel's stock trades at a price-to-earnings ratio of about 23 on Wall Street's earnings estimates for 2025, which is slightly higher than the S&P 500 average. Analysts expect Intel to grow earnings at an annualized rate of 5% going forward, which is in line with previous estimates. This valuation, combined with Intel's market leadership and innovation efforts, makes it an attractive investment for billionaires looking to capitalize on the growing data center market.



Now, let's talk about the risks. Intel is losing ground to its top CPU rival, AMD, and its foundry business has been piling up losses. The company's biggest issue is its third-party foundry business, which it launched in 2021 to help drive growth. Instead, it has been piling up losses. In Q3, its foundry business saw revenue decline by 8% year over year to $4.4 billion, while the division's operating losses ballooned to $5.8 billion from $1.8 billion a year ago. The results included a $3.1 billion impairment charge. But even without the impairment, the loss still would have jumped to $2.7 billion.

But here's the thing: Intel is not just sitting back and taking it. The company is working to turn its foundry business into an independent subsidiary, which it thinks will help better serve customers and allow for outside funding. It could also be a precursor to the company eventually looking to spin off the business.

So, is Intel the best data center stock to buy according to billionaires? The answer is a resounding YES! Intel's established market position, financial resources, government support, and innovation efforts make it an attractive investment for billionaires in the data center sector. But remember, the market is a fickle beast, and nothing is guaranteed. So, do your own research and make an informed decision.



In conclusion, Intel is a company with a rich history and a bright future. Its strategic initiatives, including the development of new AI-enabled products, investments in manufacturing, and the potential spin-off of its foundry business, are aimed at enhancing its competitiveness in the data center market. These initiatives align with the long-term goals of billionaire investors who are seeking companies with strong growth potential in the AI industry. So, don't miss out on this opportunity to invest in one of the most innovative and forward-thinking companies in the tech industry. BUY NOW!