2. Intel Corporation (NASDAQ:INTC)
GLG’s Stake Value: $290 million
Percentage of GLG’s 13F Portfolio: 0.93%
Number of Hedge Fund Holders: 74
Intel Corporation (NASDAQ:INTC) is one of the oldest semiconductor firms in the world. The company is primarily known for selling central processing units (CPUs) to both the general public and corporate users. Intel Corporation (NASDAQ:INTC) has pioneered countless different processor lineups, iterating its design to improve performance in each generation.
Mr. Gottesman’s former investment firm owned 5.6 million Intel Corporation (NASDAQ:INTC) shares during the fourth quarter of last year. This enabled it to own a $290 million stake constituting 0.93% of its portfolio. At the same time, 74 of the 924 hedge funds polled by Insider Monkey had also owned the company’s shares.
Intel Corporation (NASDAQ:INTC) brought in $19.5 billion in revenue and $1.09 in non-GAAP EPS during its fiscal Q4, enabling it to beat analyst estimates for both. In the wake of the ongoing war in the Eastern European nation of Ukraine, the company became one of the first Western technology firms to halt its sales in Russia, in the wake of U.S. government sanctions.
Intel Corporation (NASDAQ:INTC)’s largest investor is Seth Klarman’s Baupost Group. It owns 18 million shares and has a stake of $928 million.
Third Point Management mentioned Intel Corporation (NASDAQ:INTC) in its fourth quarter 2021 investor letter and stated 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.”
