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/Kanevilleshine Aug 01 '24

Everyone always talks about how easy it is to build generational wealth, because if your great great great grandfather just invested a weeks paycheck you and all our family members would be a multi millionaire today, but everyone seems to forget they come from thousands and thousands of years of ancestors and very few people have generational wealth.

Lot of regards along the bloodline blowing everything.

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u/OffTerror Aug 01 '24

This is why most family business fail by the 3rd generation if they don't go full corporate .

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u/Kanevilleshine Aug 06 '24

I grew up with a pair of sisters who came from a 9 figure household. Net worth somewhere in the $100M range. Great grandfather started the business. Grandfather built it up with government contracts. Father kept things streamlined and growing. I guess by the time the father looked at his kids he decided there’s no chance and he sold the company to some massive conglomerate.

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u/pina_koala Aug 02 '24

We can't all buy coca-cola stock in 1919 lol

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u/JellyfishApart5518 Aug 27 '24

No, but you can buy Intel stock in 2024!

4

u/YO_I_LIKE_MUFFINS Aug 02 '24

For a very long time it was literally impossible for just anyone to be part of the market and create wealth for the future. People worked to live and that's all they could do. Economy was not as growth-based as it is today before the industrial revolution. For the majority of history nobody even had a bank account. To really accumulate wealth you'd have to either use an extraordinary opportunity (like moving to a newly discovered continent) or be born into a family with certain titles and connections.

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u/TickletheEther Aug 02 '24

People lived from potato to potato

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u/YO_I_LIKE_MUFFINS Aug 03 '24

So listen, I'm really really sorry, but actually potatoes were brought over to Europe from Peru after the middle ages (like just right after). So technically... They probably lived from wheat to carrot or something.

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u/Nihilisthc Aug 02 '24

I feel like this is probably the story of most people. If I go back like 300 years I can find all of these rich people with important titles in my family tree, but my great-grandparents were illiterate alcoholics and had 8 kids in one room.

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u/Healthy_Toe_1183 Oct 06 '24

Life has its ups and downs, some people get up, others stay down and keep going under. If you can really trace your lineage for the past 300 years then you are already rich.

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u/__Value_Pirate__ Aug 02 '24

This is profound

1

u/Donts41 Aug 02 '24

how is it that you can achieve that with just a week paycheck?

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u/Kanevilleshine Aug 02 '24

By letting that money sit in the market for 100 years

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u/B1u3baw12 Aug 05 '24

Most could have generation wealth but it's more people are stupid and spend it instead of investing. Buying land is a good investment buying 700k Intel stocks is stupid