We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A technician soldering components for a semiconductor board.
Intel Corporation (NASDAQ:INTC)
Intel Corporation (NASDAQ:INTC) is a developer, manufacturer, designer, marketer, and supplier of computing and related services and products. It provides various products including Computer Systems and Devices, memory and storage, and microprocessors and chipsets. The stock is up 22.53% in the last week against the S&P 500’s 1.13% gains.
Intel Corporation (NASDAQ:INTC) stock has lost half its value in the last year alone, but it is now at a level where talks of bailing out the company as a matter of national security are causing an upsurge in price. Just yesterday, the Wall Street Journal reported that both Broadcom and Taiwan Semiconductor Manufacturing are interested in buying parts of Intel’s business, with Broadcom focused on the chip design and marketing part of the business.
TSM is unlikely to be given a major stake in Intel Corporation (NASDAQ:INTC) as it is a foreign entity. However, the talks of such a buyout or investment are likely to unlock a better valuation for investors, which is what’s at play here right now.
On the business front, the company’s sales went down 7% YoY in Q4 while the Network and Edge segment grew 10%. While there is potential for growth, investors are likely not betting on that right now. With former CEO Gelsigner ousted from the company and his turnaround plan in the doldrums, investors would like to see more evidence of an improving business before they put their money in the stock.
Overall INTC ranks 1st on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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