Even in 2024, the market shows no signs of slowing down. It wasn't until January that he finally got confirmation that a new bull market was on track. S&P500 A new record was set. It has been on the rise since then, heading for a 10% gain in the first quarter of this year.
While the overall market is regularly setting new records, some individual stocks, particularly in the tech sector, continue to trade at discounts. Two Motley Fool contributors were asked to take a closer look at two of these discount tech stocks. They provide insight and suggestions on whether these two stocks are worth including in your investment portfolio.
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Intel is undergoing a remarkable transformation
Keith Noonan: it's not a secret intel (INTC 0.91%) It lags behind some of its major competitors when it comes to chip design.The company surrendered some of its market share to Advanced Micro Devices in the central processing unit (CPU) market for PCs and servers. The company also faces threats such as: arm holdings in the laptop market.
Despite gaining about 43% last year, Intel shares are still down 35% from their peak in early 2020. Although Intel is trying to catch up with major competitors in the CPU market and expand in new categories that can take advantage of artificial intelligence (AI) demand and other opportunities, the company continues to face a tough competitive environment. Will continue. design space.
On the other hand, one of Intel's strategic advantages is actually on track to become even more pronounced. Intel is already ranked as the world's third-largest semiconductor maker, with others following suit. taiwan semiconductor manufacturing And Samsung.
The main reason for this is that the company manufactures most of its chips in-house. But Intel appears poised to make big strides in producing chips for other companies, and will receive significant support from the public sector. What's behind this potentially massive transformation?
Many analysts and geopolitical experts predict that China will move to tighten its control over Taiwan within the next decade. The availability of high-performance semiconductors has become an important economic and national security issue. TSMC is the clear leader in the contract chip manufacturing market and has an even greater advantage when it comes to producing high-end chips needed for AI and accelerated computing processes. But the United States and other Western countries can no longer rely on an uninterrupted supply of chips from Taiwan.
In response, Western governments are investing in Intel, helping to position the chip giant as a credible successor to TSMC. Intel's manufacturing business is expected to grow significantly over the next decade, which could have a transformative impact on the stock price. Although the stock is still down 44% from its high, now seems like a smart time to take a long-term position in semiconductor stocks.
Korean super app
Jeremy Bowman (Coupang): Coupang (CPNG 1.02%) It hasn't gotten much attention on Wall Street lately, and it's easy to see why. The stock has been a flop since its high-priced IPO in March 2021, and is currently down 65% from its peak immediately after the IPO.
Investors may have moved on to other stocks, but Coupang is worth a second look, especially since the stock is reasonably valued and the stock still has a lot of growth potential.
First, Coupang has made many comparisons with: Amazon, and for good reason. The company is a leading e-commerce platform in South Korea and has adopted some of Amazon's most successful tactics. Coupang operates both as a first-party seller and as a marketplace with third-party sellers, allowing us to leverage the strengths of our platform and collect fees from sellers who use Coupang .
The company also has a Prime-like membership program called Rocket WOW, which offers free shipping and returns, fresh groceries delivered in just a few hours, and non-perishable items delivered the same day. South Korea is one of the most densely populated countries in the world, making it suitable for efficient e-commerce operations.
Beyond e-commerce, Coupang is also expanding into new businesses and international expansion, including food delivery, streaming services, and digital payments.
Coupang reported $6.6 billion in its most recent quarter, up 23% year over year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $294 million, indicating rapid growth and profitability.
Considering its growth potential and reasonable valuation, taking advantage of the discount in Coupang stock seems like a smart idea.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Jeremy Bowman has a position at Amazon. Keith Noonan has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Coupang, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: These are a long call on Intel at $57.50 in January 2023, a long call on Intel at $45 in January 2025, and a short call on Intel at $47 in May 2024. The Motley Fool has a disclosure policy.
