What Does George Soros See in INTC Stock?
George Soros, the billionaire investor, seems to believe that Intel Corporation (NASDAQ:INTC) stock is a winning ticket, as a U.S. Securities and Exchange Commission (SEC) Form 13F reveals that Soros purchased 685,500 shares of INTC stock at a value of $25,878,000. (Source: “United States Securities and Exchange Commission Form 13F Information Table,” U.S. Securities and Exchange Commission, November 14, 2016.)
So what does Soros see in Intel stock, and should the average investor invest in Intel as well?
Let’s start with the year in review. Intel stock had a weak beginning in 2016, falling in February to its lowest point, but recovered as time went on, reaching its yearly high (so far). All in all, besides some dips and soars, ultimately it has been a stagnant year for the chipmaker, rising less than one percent since the start of 2016. In the past month, however, the stock has taken a hit, falling about eight percent.
But, open that range up to five years, and you see a marked improvement, with INTC stock gaining 38% in that time period, so it’s definitely been trending up in the long term.
And then you have other promising events, like its “positive” rating restated by research analysts at Susquehanna Financial Group, LLP in a research note issued to investors on Monday. (Source: “Intel Corp. (INTC) Rating Reiterated by Susquehanna,” The Cerbat Gem, November 14, 2016.)
Beyond positive events like that, there’s an important quality of Intel stock worth noting: uninterrupted dividends for the past 24 years. That doesn’t mean the return streak will be infinitely long, but that’s a good sign all the same.
And, despite challenging conditions in the personal computer (PC) market, the company has still seen growth in this year’s Q3. Intel reported that revenue from its “Client Computing Group,” its PC chip segment, rose 4.5% year-over-year to $8.9 billion. (Source: “Intel Reports Record Quarterly Revenue of $15.8 Billion, Up 9 Percent Year-Over-Year; Operating Profit of $4.5 Billion,” Intel Corporation, October 18, 2016.)
There’s a lot to like about Intel stock. Having said that, there are a lot of question marks as well. For instance, President-elect Donald Trump has proven a liability to tech stocks in his few short days in office. Of course, Soros made these investments before the advent of “The Donald” as president, but still, he’s shelling out a lot of cash on Intel, so he must believe that this stock is one to watch.