After a difficult 2019 and a decade of slow, uninspiring growth, US chipmaking giant Intel surprised many with a strong first quarter performance, due in no small part to a sales bump caused by a rise in home working and schooling during the early stages of the COVID-19 pandemic.
But, while INTC stock has been fairly buoyant of late, the company’s encouraging Q1 performance might prove unsustainable in the months ahead, as the full weight of the pandemic’s economic hit is felt.
Thinking of investing in Intel stock? This guide will explain how to buy Intel stock, take a look at the best stockbrokers and consider the company’s prospects going forward.
Where to Buy Intel Stock
If you’re looking to invest in Intel, we recommend creating an account with one of our recommended online stockbrokers. If you’re outside the United States, select eToro. If you’re inside the US or Canada, Stash Invest is the best platform on which to buy Intel stock.
1. eToro – Market Leading Broker Built on Social Trading Innovation
Well known as one of the pioneers of social trading, eToro has developed into one of the world’s leading brokers over the last decade.
Having built its reputation on accessibility and smart design, eToro now combines appealing usability with access to more than 800 stocks and a comprehensive choice of markets, including crypto, stocks, commodities, forex and indices.
If you’re interested in investing in Intel you can opt to buy the underlying asset by opening a long position on INTC. Alternatively, eToro also allows you to trade INTC with CFDs (Contracts For Difference). This means you can speculate on the stock’s price fluctuations without actually buying the stock, a method that suits day traders looking for quick wins. It also gives you the option of opening a short position or leveraging your trade to boost its value.
With eToro's famous CopyTrader tool, you can mimic the portfolios of other traders at the click of a button. You can also engage with other members of the eToro community to discuss positions and strategies.
eToro’s pricing is very reasonable – there are no fees or stamp duty on stock purchases and the minimum deposit of $200 is relatively affordable. If you’re new to trading, or just new to eToro, it’s a good idea to get to grips with the $100,000 demo account before trading with real money, check out our eToro review to find out more.
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Should I buy Intel stock? Points to consider
It’s always best to do your research before you buy Intel stock or similar stocks like AMD stock or NVIDIA stock. We always recommend taking a closer look at the company fundamentals and researching historic price movements and forecasts before you invest money.
Intel business model and share price history
Intel’s heyday came during the PC era, when it became the world’s largest chipmaker on the back of developing the first microprocessor. It was around this time that Intel’s market-dominating partnership with Microsoft became known as the Wintel Alliance. But, like Microsoft, Intel’s growth started to slow when smartphones and tablets began to redefine the marketplace.
The last decade has been a bit underwhelming for Intel. Growth has been sluggish and anything resembling exciting diversification has failed to really take off. The company even lost its standing as the world’s largest chipmaker to Samsung in 2018.
Even worse, AMD is currently leading the way in the processor market with its hugely successful Ryzen processor, a product that Intel will struggle to top anytime soon.
Surprisingly strong results in the first quarter of this year appear to suggest Intel’s emergence from this decade-long malaise. Year over year gains were certainly impressive: Q1 revenue of $19.8 billion represented a 23% increase on last year, while earnings per share shot up 63% to $1.45.
Unfortunately, the news was tempered by an uncertain second quarter outlook that prompted Intel to pull full-year guidance for 2020. And it appears that this gloomy forecast is shared by analysts, who predict a 21.1% drop in net income for the third quarter.
Intel stock dividend information
Intel pays 27.10% of its earnings as a dividend and has increased its dividend payment by an average of 7% each year.
It currently pays an annual dividend of $1.32 per share, with a dividend yield of 2.25%. The next quarterly dividend payment will be made to shareholders of record on Monday, June 1.
Intel stock forecast and prediction
Intel’s median 12-month target price according to CNN – based on 35 analyst forecasts – is $62.00, with a low target of $45.00 and a high target of $90.00. The median target represents a 6.11% increase on the current price of $58.43.
MarketBeat’s analyst ratings are a bit more positive, reporting a median target of $64.69 and a consensus rating of Hold.
How to Buy Intel Stock on eToro
It’s quick and easy to invest in Intel stock at our recommended broker, eToro. Assuming you’ve signed up and funded your broker account, follow these simple steps to buy Intel stock.
Step 1: Search for Intel (INTC) Stock
Look up Intel by typing the ticker symbol INTC into the search box.
Step 2: Click on trade
Click Trade in the top right corner of the Intel page.
Step 3: Specify ‘Buy’
If you want to purchase the underlying asset, specify ‘Buy’ on the top tab, change the leverage to X1 and proceed to set your order. To trade INTC CFDs, set your leverage amount, Stop loss and Take profit order limits, then click ‘Set Order’.
Investing in Intel Shares – Final Thoughts
There are reasons to keep an eye on Intel. Whether or not its first quarter performance was a blip, it has boosted the company’s income and, perhaps, delivered the shot in the arm it needed after years of near-stagnation.
The eye-catching acquisition of the urban mobility startup Moovit in early May – a move designed to expand and enhance Intel’s driver-assisted technology subsidiary, Mobileye – furthers the company’s plans to “become a complete mobility provider, including robotaxi services, which is forecast to be an estimated $160 billion opportunity by 2030.” So it’s fair to say that Intel is committing to seriously ambitious diversification strategies.
But significant growth areas aren’t likely to emerge in the shorter term and, while Intel looks like a relatively solid stock in uncertain times, we don’t see a great deal of upside in the months ahead.
If you do want to buy Intel stock, sign up to one of our recommended online brokers. We suggest going with eToro for traders living outside the US, while Stash Invest is the best option if you live in the States.
FAQs
Should I buy Intel stock or wait?
We don’t foresee much upside in the coming months, but Intel will probably weather the Coronavirus crisis better than most. Like the majority of analysts, we’ve got INTC down as a Hold right now.
What are the fees when buying Intel stock?
Zero-commission stock and ETF trading is available to European clients who trade on eToro. This means that eToro doesn't add a dealing charge or any administrative fees when you buy Intel stock.
Is there a Intel stock price prediction?
CNN’s 12-month price target, based on the predictions of 22 analysts, is $62.00, a 6.11% increase on the current price.
What does the Intel stock dividend pay?
Intel currently pays an annual dividend of $1.32 per share.
