Should You Forget Intel and Buy This Millionaire-Maker Stock Instead?

From Nasdaq: 2025-06-12 04:05:00

Intel (NASDAQ: INTC) was once a millionaire-maker stock, with a $10,000 investment in its 1971 IPO now worth $10.3 million. However, it hasn’t seen significant gains since its record high in 2000. Struggles with market share losses, shortages, and strategic shifts have hindered growth.

Analysts project Intel’s revenue to grow at a slow 2% CAGR from 2024 to 2027 under new CEO Lip-Bu Tan. Despite expected losses in 2025, profitability is forecasted to return in 2026 with significant net income growth in 2027. Challenges lie ahead with new chip rollouts and cost-cutting measures.

Comparatively, Broadcom (NASDAQ: AVGO) offers a brighter outlook for investors. The stock has created millionaires over the years and boasts a diversified tech portfolio. Broadcom’s fabless model, acquisitions, and focus on high-growth AI applications set it apart from Intel, making it a more appealing investment option.

With Broadcom’s revenue and EPS expected to grow at a CAGR of 18% and 80% respectively from 2024 to 2027, the stock presents a compelling opportunity. Strong sales in AI chips, cloud expansion, and buybacks drive growth. Trading at 38 times forward earnings with a 1% yield, Broadcom outshines Intel in terms of potential returns.

Considering Broadcom’s robust growth prospects and exposure to AI and cloud markets, it appears to be a more favorable investment choice compared to Intel. While Intel may recover in time, Broadcom’s strategic advantages position it for long-term success in the evolving tech landscape.



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