Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

4. Intel Corporation (NASDAQ:INTC)

Growth Investment Ratio: 205%

Number of Hedge Fund Holders: 75

Intel Corporation (NASDAQ:INTC) is the beleaguered American chip manufacturing giant that has been one of the biggest stock stories of 2024 and for all the wrong reasons. Intel Corporation (NASDAQ:INTC)’s decision to suspend dividends and lay off thousands of employees earlier this year decimated investor sentiment. The firm is currently focusing on developing the 18A chip manufacturing node through which it aims to take process leadership away from the Taiwan Semiconductor Manufacturing Company (TSMC) and cater to the growing chip needs of the biggest companies in the world. 18A is dead at the center of Intel Corporation (NASDAQ:INTC)’s hypothesis, and the stock will respond based on developments regarding the technology’s execution milestones. Intel Corporation (NASDAQ:INTC)’s contract manufacturing subsidiary is another key part of its story, but since it was made into a subsidiary earlier, its impact is less pronounced.

ClearBridge Investments mentioned Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter. Here is what the fund said:

“While the market environment clearly was a headwind in the third quarter, several of our large positions also faced challenging conditions, which negatively impacted results. In the information technology (IT) sector, Intel Corporation (NASDAQ:INTC) has come under additional pressure due to continued softness in the company’s core PC and server markets as well as concerns on the company’s longer-term competitive position. While Intel’s turnaround is not happening overnight, we are constructive on the outlook into 2025: the company’s product positioning should be much improved and it should be positioned to gain market share in a cyclical upswing in which it has strong earnings power. A somewhat adverse spending environment due to AI myopia has weighed on shares, but we still think the market is undershipping PCs and general servers following a COVID normalization period that saw demand get pulled ahead and then languish as companies froze IT budgets. The installed base is now getting older, and we expect a strong refresh cycle into next year. The delay is actually beneficial to Intel, whose product positioning will be all the more improved. While our investment case is not predicated on an M&A transaction, and we believe one is unlikely, the expression of interest in the company speaks to the value of the assets, which we think still trade at a meaningful discount to fair value.”