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Investors who have owned stocks since 2016 generally have experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return in the past five years is 120.4%. But there is no question some big-name stocks performed better than others along the way.
A Big Run: Intel Corporation (NASDAQ: INTC) has had a bumpy ride since 2016. But despite lots of struggles along the way, Intel investors have gotten some decent overall returns.
The rise of smartphones, online gaming, cloud computing, cryptocurrency and other innovations created a boom in semiconductor demand over the past decade. Unfortunately for Intel, innovation missteps and production delays led to missed opportunities for company in the past five years.
Throughout 2018 and 2019, Intel was unable to produce enough CPUs to supply its customers, essentially turning over market share to rival Advanced Micro Devices, Inc. (NASDAQ: AMD) and others for free. In 2020, Intel said chip manufacturing issues would once again be delaying production of its 7-nanometer chips, and the company may be forced to rely on third-party manufacturers for the first time.
At the beginning of 2016, Intel shares were trading at around $34. The stock hit its low point of the past five years in mid-2016, dipping down to $24.87.
From that point, the stock steadily churned higher over the next several years, reaching $50 in early 2018 and $60 for the first time in early 2020.
Intel In 2021, Beyond: Intel peaked at $59.29 prior to the COVID-19 pandemic sell-off, which pushed the stock back down to $43.63 in March. Intel revisited its 2020 lows again in late October, but skyrocketed back up to above $57 per share in January after the company announced a new CEO, Pat Gelsinger.
Investors who had no knowledge of the massive gains from semiconductor peers like AMD in the past five years would be fairly satisfied with their Intel returns.
Intel investors that bought and held on through a volatile five-year period turned a significant profit. In fact, $1,000 worth of Intel stock bought in 2016 would be worth about $2,408 today, assuming reinvested dividends.
Looking ahead, analysts expect Intel to grind higher in the next 12 months. The average price target among the 33 analysts covering the stock is $60, suggesting only 4.5% upside from current levels.
(Photo: Walden Kirsch/Intel Corporation)
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