Intell Buy Sell Hold: Nvidia and Intel Stock Analysis

Nvidia and Intel are two tech giants that have been making waves in the market. Nvidia's stock price has been on a rollercoaster ride, with a high of $700 in 2021 and a low of $50 in 2020, due to their strong performance in the gaming and AI markets.

Their strong revenue growth has been driven by their Graphics Processing Units (GPUs), which are in high demand for gaming and AI applications. Nvidia's revenue increased by 50% in 2020 compared to the previous year.

Intel, on the other hand, has been struggling to compete with Nvidia in the GPU market. Their stock price has been relatively stable, ranging from $40 to $70 over the past year. Despite their struggles, Intel has been making efforts to diversify their product offerings and increase their presence in the AI market.

Their efforts to acquire AI startups and invest in AI research have been a positive step towards increasing their AI capabilities.

Nvidia's earnings growth is its strong point, with a 99 Earnings Per Share Rating and a Composite Rating of 98.

The company's stock is on the IBD Leaderboard, and analysts expect a compound annual growth rate of 5.7% in sales for the S&P 500, but Nvidia's two-year compound growth is expected to reach 35.5% in sales and 35.1% in earnings per share.

Nvidia's revenue and earnings growth estimates through 2026 rank first among S&P 500 companies, making it a top AI stock to watch.

Nvidia's demand for its next generation graphics processing unit, the GB200, is expected to reach 3 million in 2026, a significant increase from 1.5 million for its H100 units in 2023.

Analysts at Bernstein say that while sustainability is a question for Nvidia, the time to worry is not now, given its phenomenal growth.

Nvidia stock is a must-watch due to its strong earnings growth and ideal Earnings Per Share Rating of 99.

Its Compound Rating of 98 shows all-around strength, and analysts expect a compound annual growth rate of 5.7% in sales for the S&P 500, but a whopping 35.5% in sales and 35.1% in earnings per share for Nvidia.

Nvidia's next generation graphics processing unit, the GB200, is expected to reach 3 million in 2026, compared to 1.5 million for its H100 units in 2023.

Analysts at Bernstein say that after its phenomenal growth, sustainability is the main question Nvidia faces, but the "time to worry is clearly not now."

Nvidia's stock has been on the IBD Leaderboard, and the model portfolio has a hedge on that position with the Granite 2x Short NVDA Daily (NVD) exchange traded fund.

Nvidia's AI chip business is expected to grow significantly, with a total addressable market that will grow 40% to 55% annually for at least the next three years, according to Bain.

Nvidia stock fell sharply below the 50-day moving average and saw the largest one-day market cap ever loss in dollar terms for any U.S. company, according to Dow Jones Markets Data.

Nvidia has built a new base with a buy point of 146.54 but remains below the 50-day line, making it not a buy yet.

A rebound above the 50-day line in high volume would be helpful for investors to assess whether Nvidia stock is a buy now.

The relative strength line shows that the stock has not outperformed the S&P 500, so it's wise to wait and see if it improves before buying the stock.

Intel, on the other hand, has shifted its focus on artificial intelligence and manufacturing, and is expected to reach over 60% gross margins and 40% for operating margins this year.

Intel's stock has risen with its plans to build domestic chip fabs, but it's a difficult stock to peg down as either a value play or potentially a value trap right now.

Intel's stock has taken a hit, with shares down 53% for the year to date on a total return basis. This makes it the worst Dow stock of 2024 so far.

The average analyst target price for INTC stock is $24.72, representing implied upside of 6% to current levels. However, the consensus recommendation is a Hold.

Needham analyst Quinn Bolton rates INTC as a Hold due to Intel's elevated valuation, falling revenue estimates, increasing competition, and distant Intel Foundry Services revenue contributions.

Intel's third-quarter revenue results were better than expected, but accelerated foundry development is weighing on near-term margins.

The 26 analysts with 12-month price forecasts for Intel stock have an average target of $30.23, with a low estimate of $20 and a high estimate of $66.

Here's a breakdown of the analysts' predictions:

Intel's focus on artificial intelligence and manufacturing has led to some positive developments, including welcoming new clients for its AI products and introducing new chips like Xeon 6, Gaudi 3, and Lunar Lake.

Intel's stock has taken a significant hit, down 53% for the year to date on a total return basis. This makes it the worst Dow stock of 2024 so far.

The average analyst target price for INTC stock is $24.72, representing implied upside of 6% to current levels. This suggests that analysts are cautiously optimistic about the stock's future prospects.

Intel's third-quarter revenue results were better than expected, but accelerated foundry development is weighing on near-term margins. This is a concern for investors, as it may impact the company's ability to meet its revenue targets.

A 12-month price forecast for Intel stock has an average target of 30.23, with a low estimate of 20 and a high estimate of 66. This suggests that analysts are predicting a significant increase in the stock's price over the next year.

Here's a breakdown of the 12-month price forecast for Intel stock:

Intel's shares fell 41% since 2021, while AMD's rose 51%. This significant difference in performance may be a concern for investors looking to buy into the stock.

Intel's revenue growth has been a mixed bag, with a 1.58% increase in FY 2019, followed by an 8.20% jump in FY 2020, and then a 1.49% rise in FY 2021. However, in FY 2022, revenue plummeted by 20.21%, and in FY 2023, it dropped by 14.00%.

The company's focus on artificial intelligence and manufacturing has led to some promising developments, such as the introduction of new AI chips like Xeon 6, Gaudi 3, and Lunar Lake chips. Intel's plans to build domestic chip fabs are also expected to improve its AI prospects and potentially reach over 60% gross margins and 40% operating margins this year.

Here's a snapshot of Intel's revenue growth projections for the next few years:

Nvidia's earnings growth is its strong point, with an ideal Earnings Per Share Rating of 99 and a Composite Rating of 98.

Analysts expect a compound annual growth rate of 5.7% in sales for the S&P 500, but Nvidia's two-year compound growth is expected to reach 35.5% in sales and 35.1% in earnings per share.

Nvidia's third-quarter sales came in at $35.08 billion, beating analyst estimates of $33.17 billion. Their earnings were also higher than expected at 81 cents per share.

Intel's stock has seen a significant decline, falling 53% for the year to date on a total return basis. Analysts are on the sidelines, with an average analyst target price of $24.72, representing implied upside of 6% to current levels.

Intel's revenue growth is expected to be high in the coming years, with estimates ranging from 3.0% to 22.5% from 2024 to 2026.

The 26 analysts with 12-month price forecasts for Intel stock have an average target of $30.23, with a low estimate of $20 and a high estimate of $66. This predicts an increase of 49.51% from the current stock price of $20.22.

Here's a summary of the analysts' price forecasts for Intel stock:

These forecasts show a wide range of possible outcomes for Intel's stock price, from a small decline to a significant increase.

The Dow Jones futures are on the rise, but the market rally is getting close to breaking point. This is evident in the wild start to 2025, where the Nasdaq tested its 50-day mark.

Tesla and Apple were among the key losers in this market volatility. These tech giants are usually reliable performers, but they've taken a hit recently.

Nvidia, on the other hand, has been rallying. Its AI chip lead is proving to be sustainable, according to analysts. This is a significant development in the tech industry.

Here's a brief rundown of the top stocks to watch: