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  5. INTC: Hi 5i Team, Curious why Tiny has been falling over the past month? [Intel Corporation]
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Q: Hi 5i Team,

Curious why Tiny has been falling over the past month?

Also have some INTC shares from long ago, I would hate to sell at the bottom, but wondering if it is time to move on to something else - any recommendations?

Thank you.
Asked by Evan on August 29, 2024
5i Research Answer:

TINY shares have been under pressure since June when the company abruptly announced a change in leadership as the former CEO – Andrew Wilkinson stepped down but continued to be involved with the Board effectively immediately. TINY used to be an acquisitive growth story; the company aimed to replicate the success of BRK.B in small e-commerce businesses. However, with a change in leadership and a series of weak earnings, we don’t think TINY’s story is as attractive as it used to be. On the other hand, INTC has underperformed the market drastically, the company’s legacy business model of designing and manufacturing the chips themselves in this day and age requires a high specialization for the fabrication (which TSM is leading). INTC might have some possibility for a short recovery, but we don’t think INTC is a long-term winner in this space, we would be okay switching INTC to something else more promising. With its dividend elimination, we think the shareholder base is going to transition, and this could still pressure shares for some time.