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How to Buy Intel Stock Now, Price Forecast and Dividend Guide

November 17, 2021 15:57

Should I buy Intel stock? In this guide, you will learn how to buy and sell Intel shares and get price forecasts, analyst outlooks and dividend information to help make your decision!

Intel Corporation is the largest semiconductor manufacturer in the world. The company designs and manufactures chips for personal computers, data centres & cloud computing, the internet of things, autonomous driving and other segments.

Everyday life continues to become more high-tech, as more services are being digitised and industries constantly striving for more innovative and cost-effective ways to operate. Before risking your money and investing in Intel stock, you should understand its business activities, how it makes money, potential risks and opportunities, plans & investments, analyst predictions, dividend schedule, and earning potential.

Intel Stock Overview

  • Intel Corporation was listed on the NASDAQ exchange on the 13th of October 1971 with the ticker symbol INTC.
  • As of December 2020, Intel had 110,600 employees worldwide.
  • Intel operates ten manufacturing sites. Six locations are for wafer fabrication, three
  • are assembly/test facilities, and one is a test-only site.
  • Intel spent $19.7 billion on research and development in 2020.
  • In 2020, Intel generated $77.87 billion in revenue and $20.9 billion in profit.
  • INTC is a constituent of the Nasdaq 100 index, Dow Jones Industrial Average and S&P 500.
  • The name Intel stands for Integrated Electronics

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Intel Stock Initial Public Offering

Intel was listed on the Nasdaq stock exchange on the 13th of October 1971, only six months after the Nasdaq exchange went live. INTC shares were sold for $23.50 per share in an initial public offering, raising a modest $6.8 million, approximately $45.9 million, when adjusted for inflation.

Intel Share Price History

INTC shares were sold for $23.50 per share in an initial public offering. When adjusted for stock splits, the Intel share price at the IPO is $0.02 per share.

If you bought 100 Intel shares at the IPO price, you’d have paid a total of $2,350. Fast forward to the 31st of August 2021, and you’d have a 121,152 share position worth $6.5 million.

Intel Stockholders

The top ten investment firms and funds with positions in Intel stock indicate interest among the largest investment firms worldwide.

Shareholder fund No. shares % Owned
VANGUARD GROUP INC 339,140,220 6.81%
STATE STREET CORP 177,408,741 3.56%
BlackRock Institutional Trust Company, N.A. 128,614,379 2.58%
Capital Research & Management Co – Division 3 93,549,148 1.88%
BlackRock Fund Advisors 79,391,014 1.59%
BANK OF AMERICA CORP /DE/ 61,775,924 1.24%
NORTHERN TRUST CORP 53,019,435 1.07%
BlackRock Group LTD 44,587,967 0.90%
Fidelity Investments 33,655,934 0.68%

Intel Stock Dividend Information

Intel is among the few tech companies that continue to pay dividends to shareholders. Most tech companies have evaded the notion of paying dividends to shareholders, claiming better use of the cash would be reinvesting in the company and new growth opportunities. In some cases, paying dividends is seen as a negative indicator implying the company doesn’t have any new opportunities to invest its cash.

In the fiscal year ended 2020, Intel paid $5.6 billion in dividends to shareholders in quarterly payments of $0.33 per share. The dividends for 2021 have risen to $0.3475 ($1.39 per year). The current INTC dividend yield is 2.59%.

Intel Stock Splits

Intel has performed 13 stock splits in its history. The most recent Intel stock split took place on the 30th of July 2000. If you owned 100 Intel shares before the first split, you’d have 121,152 shares in the company today.

INTC Stock Split History

  • 17th of May 1973: Intel stock was split 3-for-2, meaning every shareholder will have one additional share of every two they own, in other words, an additional 50%.
  • 15th of May 1974: INTC stock split of 3-for-2.
  • 26th of May 1976: INTC stock split of 3-for-2.
  • 1st of September 1978: Intel stock split of 5-for-4, meaning for every four shares owned, the shareholder would have an additional one share following the split, meaning their number of shares increases by 25%.
  • 31st of May 1979: INTC stock split of 3-for-2.
  • 10th of August 1980: INTC stock was split 2-for-1, meaning shareholders received twice as many shares as they had before the split.
  • 30th of June 1983: Intel stock split of 2-for-1.
  • 28th of October 1987: INTC stock split of 3-for-2.
  • 6th of June 1993: INTC stock split of 2-for-1.
  • 16th of June 1995: INTC stock split of 2-for-1.
  • 13th of Jul7 1997: INTC stock was split 2-for-1.
  • 11th of April 1999: INTC stock split of 2-for-1.
  • 30th of July 2000: INTC stock split of 2-for-1.

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Intel Stock Forecast and Prediction

Intel currently has a mixed consensus among professional Wall Street analysts and leading investment banks. Some analysts predict modest room for growth. Others expect the price to fall, suggesting holders sell before the dip.

  • Mizuho Securities analyst Vijay Rakesh maintained a buy rating on INTC stock and set a price target of $70.
  • Morgan Stanley analyst Joseph Moore lowered his INTC price rating to $70 (from $72), but maintained an overweight rating on the stock, implying he expects Intel to outperform other companies in the same sector.
  • P. Morgan analyst Harlan Sur maintained a buy rating on INTC shares and set a price target of $78.
  • Rosenblatt Securities analyst Hans Mosesmann maintained a sell rating on INTC shares and set a price target of $40.
  • Barclays analyst Blayne Curtis maintained an underweight rating on INTC shares and lowered the firm’s price target on Intel to $50 (from $58).

Should I Buy Intel Stock? Points to Consider

Despite being the frontrunner of the 500-billion-dollar semiconductor industry, Intel has been underperforming rivals Nvidia and AMD in the stock market. If you’re wondering if there is a potential opportunity to buy INTC shares, you should consider what opportunities the company has, how it’s investing its money and how it plans to grow revenue and compete in the market.

Intel Business Model

Intel was founded by semiconductor pioneers Gordon Moore and Robert Noycein, in 1968 in Santa Clara County, California. It later became a Delaware corporation in 1989 but maintained its headquarters in Santa Clara.

Intel is the developer of the x86 series of microprocessors, the type of central processing unit (CPU) used in most laptops and personal computers today. Therefore, Intel has a strong position in the personal computer sector and the Intel stock is a popular choice for those wanting to invest in that sector. The majority of Intel’s revenues come from computer manufacturers Dell, Lenovo and HP.

In 2021, it is forecast that about 1.14 trillion semiconductor units are going to be shipped worldwide. Intel has a 15.6% market share of the semiconductor industry, and the company’s chips are found in 75% of laptops and 60% of personal computers. Intel also has a 68% share of the integrated graphics processing unit (GPU) market.

The company has a strong position as a provider of microchips for the personal computer sector, where 51% of the company’s revenue is generated. The other 49% of Intel’s revenue comes from the data centre, memory, internet of things and other segments.

Where Can I Trade Intel Stock?

One of the best ways to trade in Intel shares is to create an online trading account with ZFX, an international broker.

ZFX – Trade Intel Shares with a Multi-Asset Class Broker

Unlike a conventional stockbroker, with a ZFX trading account, you can trade multiple asset classes from one trading account. Besides speculating on the price of Intel shares, you can find stocks and indices from around the world, commodities and currency pairs in one place.
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How to Buy Intel Stock Now

Intel shares are traded on the Nasdaq exchange, and its price is quoted in US dollars. Only professional brokers and large investment firms can register directly with an exchange. Therefore, you need to work with a broker like ZFX, which lets you trade INTC shares. To start trading INTC shares today, just follow this simple step-by-step guide:

The first step to trading Intel shares is opening a brokerage account with ZFX. Choose between either a live or demo trading account. Demo accounts are great for practising your trading capabilities and getting familiar with the platform features and settings.

trade Intel stock with ZFX - Step 1

To open a live account, you’ll need your proof of identity and a proof of residence to perform online identity verification.

trade Intel stock with ZFX - verification

Fund your trading account via bank transfer, e-wallet or your Visa or Mastercard.

trade Intel stock with ZFX - Step 3

Once you’re inside the MetaTrader 4 platform, you’ll see a list of trading instruments on the left-hand side of the interface. Scroll down the list until you find Intel stock under “INTC”, and click to open the chart.

Right-click on the chart and select ‘new order’ from the context menu to open a new order. In the new order window, you can enter your order configuration, such as the number of shares you want to trade, plus any special order properties if you want to use a limit or stop order. When you’re all done, simply click ‘Confirm’.

Investing in Intel Stock – Final Thoughts

The semiconductor sector is essential for our modern economy to function and grow. Unlike other companies trending in the semiconductor sector, Intel is a manufacturer, meaning it is more resilient to supply chain disruptions and, therefore, more dependable for its clients. In addition, the majority of Intel’s manufacturing takes place in the United States, making it less at risk of political instability.

The problem for Intel stock is there is not much room left to grow in the personal computer sector. Indeed, the company already dominates that sector. Intel’s growth prospects lie in its competitors’ same niches: cloud computing, artificial intelligence, autonomous driving, and machine learning.

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