Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should buy this week.

Intel

The pandemic unearthed many key trends, one being the demand for semiconductors and computer chips.

Part of this demand is due to the versatility of computer chips being used in various sectors including the automotive industry and with 5G rolling out around the world, this momentum will only increase.

Whilst Intel was once dominant in the industry, it has since been surpassed by competitors such as AMD and Nvidia, who innovated quicker and more effectively. 

Therefore, investors should consider Intel’s pace of innovation before taking bets on the stock.

Despite this, Intel is hedging on production to Asia being outsourced and has announced plans for a $17 billion production facility in Madgeburg, Germany.

By reducing the competitive edge of production in Asia, Intel is hoping to rediscover its success and market share. However, this will hinge on protecting their market share of existing chips, whilst innovating at the same time. Only then, might Intel stock be attractive for investors.   

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Not investment advice. Past performance is not indicative of future results.