4. Intel Corporation (NASDAQ:INTC)
D.E. Shaw’s Stake Value: $397 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.32%
Number of Hedge Fund Holders: 74
Intel Corporation (NASDAQ:INTC) is the world’s largest semiconductor company with the unique distinction of not only being capable of manufacturing products with advanced processes but also designing them at the same time. The company’s name is ubiquitous in the personal computing industry.
D.E. Shaw owned 7.7 million Intel Corporation (NASDAQ:INTC) shares during Q4 2021, which were worth $397 million and represented 0.32% of its investment portfolio. Insider Monkey’s fourth quarter 2021 survey of 924 hedge funds revealed that 74 also had holdings in the chip company.
As its fiscal Q4 came to an end, Intel Corporation (NASDAQ:INTC) had raked in $19.5 billion in revenue and $1.09 in non-GAAP EPS, beating analyst estimates for both. The company is currently expanding its product lineup to include a graphics processing unit (GPU) as well.
Seth Klarman’s Baupost Group is Intel Corporation (NASDAQ:INTC)’s largest investor. It has a $928 million stake by owning 18 million shares.
Third Point Management mentioned Intel Corporation (NASDAQ:INTC) in its fourth quarter 2021 investor letter, outlining that:
“2021 was a highly productive year for Intel‘s new CEO, Pat Gelsinger. Despite the stock’s tepid results, we see a compelling, underappreciated fundamental story. Intel’s “brain drain” – a key part of our thesis when we first sought to help the company confront its long-time underperformance – appears to be reversing. Since joining Intel, Mr. Gelsinger has not only brought back prominent Intel former employees but has also attracted talents from competitors such as AMD, Nvidia, Apple, and, most recently, Micron’s stellar Chief Financial Officer, David Zinsner.
We are encouraged by Intel’s aggressive investment plan, including a recently announced fabrication plant in Ohio and acquisition of Tower Semiconductors. We knew from the start that Intel’s turnaround would be complex and lengthy, and we have been pleased to see Mr. Gelsinger sacrifice near-term earnings for long-term growth.
Finally, after a series of blunders across its PC and Server product lines, Intel is finally receiving good reviews for one of its upcoming processors: Alder Lake. Tom’s Hardware, a preeminent hardware publication, called Alder Lake “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.” While this is just one product across a broad lineup, and given it will take time to achieve leadership across them all, we are encouraged by these tangible signs of progress under Mr. Gelsinger’s leadership. With talent returning, an improving product suite, and a willingness to invest for growth, we believe Intel’s prospects have turned the corner. We expect that the company’s upcoming analyst day will be an ideal time for Mr. Gelsinger to articulate the progress he has made and begin to reset expectations for the company.”
