Intel will undergo a massive shift. Keith Noonan: Intel (NASDAQ: INTC) is clearly losing chip design ground to competition. The company lost some PC and server CPU market share to Advanced Micro Devices. The company also faces laptop competition from Arm Holdings.
Intel stock is down 35% from its early 2020 peak despite gaining 43% in the last year. Intel is trying to catch up to its CPU market rivals and expand into new categories to capitalize on demand for artificial intelligence (AI) and other opportunities, but it will still confront a tough design market.
However, Intel's strategic edge is about to grow. Intel is the third-largest semiconductor maker behind Taiwan Semiconductor Manufacturing and Samsung. Much of that is because the corporation makes most of its chips. Intel is ready to make huge breakthroughs in chip production for other companies, with public sector aid. Why this possibly significant change?
Many academics and geopolitical experts expect China to seize authority of Taiwan within a decade. Obtaining high-performance semiconductors is crucial for economic and national security. In the contract chip fabrication business, TSMC dominates, especially in high-end circuits for AI and accelerated computing. Taiwan's chip supplies are no longer reliable for the U.S. and other Western nations.
In return, Western governments are investing in Intel and promoting it as TSMC's successor. The stock may change if Intel's fabrication business grows rapidly over the next decade. A long-term stake in the semiconductor stock makes sense now that shares are down 44% from their high.
South Korea's super app Jeremy Bowman (Coupang): It's clear why Wall Street has ignored Coupang (NYSE: CPNG). The stock has collapsed since its March 2021 IPO, falling 65% from its peak. Investors may have moved on, but Coupang deserves a second look because the shares are cheaply priced and offer growth potential.
Coupang is often compared to Amazon, and for good reason. The biggest e-commerce platform in South Korea uses Amazon's best strategies. As both a first-party seller and a marketplace with third-party sellers, Coupang may exploit its platform strength and charge merchants.
Rocket WOW, the company's Prime-like membership program, promises free shipping and returns, same-day delivery on non-fresh items, and fresh groceries in a few hours. E-commerce works successfully in South Korea, one of the world's most densely populated countries.
Coupang has expanded beyond e-commerce into food delivery, streaming, digital payments, and international expansion. In its most recent quarter, Coupang reported 23% year-over-year growth to $6.6 billion and $294 million in adjusted EBITDA, indicating significant growth and profitability. Coupang stock's discount seems like a good buy given its growth prospects and fair valuation.
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