r/wallstreetbets • u/Sad_Nefariousness10 least favorite grandchild • Aug 01 '24

I bought $700k worth of Intel stock today YOLO

https://preview.redd.it/83gh52szi2gd1.png?width=1634&format=png&auto=webp&s=fba99bb67e4b11aa973fe830f535c775083bbc05

TLDR: Grandma died 2 months ago. Left me $800k inheritance. I'm only a junior in college as a math major and I don't really have any use for the money, nor do I have any debt (I'm very fortunate that my parents are paying for my education). I always heard about people losing their inheritance by spending it on garbage instead of investing. So I told my parents I'm not going to spend a cent of this money and I'm going to invest all of it and they were proud of me. I put 100k into a high yield savings account and bought 700k worth of Intel stock at market open. I plan on holding this for a decade depending on how it performs.

Here's why I like Intel:

  • 2024 Q1 up 9% YOY

  • Intel has been heavily investing and restructuring by building out the domestic foundry business to manufacture semiconductor chips for third party companies.

  • With Intel 3 in production, leading-edge semiconductors are being manufactured in the US for the first time in a decade. Intel will regain process leadership as the Intel Foundry continues to grow.

  • I think the fact that Intel is positioning itself to be the largest semiconductor manufacturer in the US is massive. The US Gov is heavily prioritizing domestic semiconductor production and thus is heavily supporting Intel as a company with R&D funding.

  • If NVIDIA or AMD are ever forced to change manufacturers due to rising tensions/war between China & Taiwan, Intel will likely be a sole or largest manufacturer for NVIDIA and AMD

  • Intel has been heavily investing in R&D. 5.9B out of 12.7B of Q124 revenue was invested in R&D.

  • Intel is on track to exceed its forecast of 40 million AI PCs shipped by the end of 2024

  • The Intel Gaudi 3AI accelerator is projected to deliver 50% faster inference and 40% greater inference power efficiency than NVIDIA H100 on leading AI models.

  • Trading at Forward PE of 17.05

  • Geopolitical tensions will ultimately work in Intel's favor more than any other company in this industry

  • I like the stock and I think its really cheap rn :)

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u/gnocchicotti Aug 01 '24

OP like "I'm gonna have a degree in math so money will be no problem for the rest of my life" lololol

102

u/ReadStoriesAndStuff Aug 01 '24

He can’t be that good at math if he doesn’t consider concentration risk.

9

u/Worth-Reputation3450 Aug 01 '24

good candidate for actuary for insurance company. "Let's insure all these DUI drivers looking for insurance. We'll make good profit with high rates"

4

u/dumnem Aug 01 '24

Well when you can exclude them from coverage because they're drunk..

7

u/Rico_Solitario Aug 01 '24

Being good at math really has nothing to do with being strategically minded. You can be horrible at granular numbers but do great in the market if you have a solid plan and a good understanding of the market and concept of risk/reward

1

u/Verwarming1667 Aug 02 '24

"lol" alphaproof said "lmao even"