Intel (NASDAQ:INTC) was once considered a stable tech stock that generated reliable returns. Its position as the world s largest manufacturer of x86 CPUs for PCs and data centers gave it a wide moat, and its robust cash flow growth comfortably funded its big buybacks and dividends.
However, Intel s stock declined about 15% this year as the Philadelphia Semiconductor Index surged 50%. Let s look back at why Intel underperformed the broader industry, and see if it might fare better next year.
How Intel lost its mojo
For decades, Intel led the CPU market by following Moore s Law, a prediction set by its co-founder Gordon Moore to double the number of transistors in the same area of silicon every two years. This was the foundation of the two-year tick-tock cycle that drove Intel s business for half a century.
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Given the many challenges endured this year, it seems only fitting that it should wind to a close amid uncertainty and caution. That seems to be where we are this week. As several recurring themes stimulus, Fed policy, virus cases and the impending rollout of a vaccine come to a head. Plus, it’s quadruple witching week, and stock indices are about to get a makeover.
One potential bright spot? We’re hearing the word “bi-partisan” for the first time in quite a while. It’s been so long, in fact, that some investors might have needed a dictionary to find out what the word meant.
U.S. Stocks Close Mixed Once Again As Early Rally Fades
WASHINGTON (dpa-AFX) - Stocks showed a strong move to the upside in early trading on Monday but gave back ground over the course of the session. The major averages pulled back well off their highs of the session, with the Dow and the S&P 500 sliding into negative territory.
The major averages eventually closed mixed for the third consecutive session. While the Nasdaq rose 62.17 points or 0.5 percent to 12,440.04, the Dow slid 184.82 points or 0.6 percent to 29,861.55 and the S&P 500 fell 15.97 points or 0.4 percent to 3,647.49.
The pullback by stocks came as amid concerns about the impact of new lockdown measures as the coronavirus death toll in the U.S. reached 300,000.
Expectations are high for
Apple s (NASDAQ:AAPL) iPhone 12. Wedbush analyst Daniel Ives claims the iPhone 12 will mark Apple s most significant product cycle since the iPhone 6 in 2014, while Cinda Securities expects the new lineup to hit 230 million to 240 million shipments in 2021, which would surpass the iPhone 6 s 222.4 million shipments.
Support for 5G networks, which was missing from last year s iPhones, is expected to drive more upgrades as carriers promote their 5G plans. And a wider range of models at lower price points should amplify that growth.
Those rosy expectations lifted Apple s stock roughly 80% over the past 12 months and buoyed its top suppliers. One of those suppliers is