Intel stock currently trades at $36 per share, about 47% below the levels seen on April 9, 2021 (pre-inflation shock high). Intel
INTC
saw its stock trading at around $37 at the end of June 2022, just before the Fed started increasing rates, and has lost about 4% since. In comparison, the S&P 500 gained close to 15% during this period. Intel has seen demand pull back as the PC market has declined meaningfully after seeing a big demand surge through Covid-19. Moreover, the increasing prominence of graphics processors also appears to be threatening Intel as these chips – which are seen as core to artificial intelligence-related workloads – could make the CPU’s Intel sells less prominent in the AI era. That said, Intel stock has recovered by about 44% from a low of $25 seen on October 11, 2022.
Interestingly, INTC stock has a Sharpe Ratio of 0.1 since early 2017, lower than 0.5 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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