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Prediction: 2 Stocks That Will Be Worth More Than Intel 5 Years From Now
INTCIntel(INTC) The Motley Fool·2025-04-19 09:05

Group 1: Intel's Performance and Challenges - Intel's stock has declined nearly 15% over the past 20 years, missing major technology transitions like mobile and AI [1] - Competitors such as AMD and Nvidia have significantly outperformed Intel in the chip market over the last decade [2] - The appointment of Lip-Bu Tan as CEO has raised hopes for a turnaround, but Intel still faces structural challenges and a legacy of poor strategic decisions [3] Group 2: AppLovin's Growth Potential - AppLovin's shares surged over 700% in 2024, although its market cap has retreated to 81billion,stilllowerthanIntels81 billion, still lower than Intel's 88.6 billion [5] - The company reported a 75% increase in advertising revenue to 3.22billionin2024,focusingonitscoreadtechbusinessaftersellingitsmobileappsdivision[6]AppLovinisexpandingintoconnectedTV,ecommerce,andotherverticals,indicatingsignificantgrowthpotentialinthemobileadmarket[7]Group3:MicronsCompetitiveEdgeMicron,likeIntel,designsandmanufactureschipsandisexposedtobusinesscyclefluctuations[8]ThecompanybenefitedfromtheAIboom,witha383.22 billion in 2024, focusing on its core adtech business after selling its mobile apps division [6] - AppLovin is expanding into connected TV, e-commerce, and other verticals, indicating significant growth potential in the mobile ad market [7] Group 3: Micron's Competitive Edge - Micron, like Intel, designs and manufactures chips and is exposed to business cycle fluctuations [8] - The company benefited from the AI boom, with a 38% revenue increase to 8.05 billion in the fiscal second quarter, driven by data center demand [9] - Micron's gross margin improved to 36.8%, and adjusted earnings per share rose from 0.42to0.42 to 1.56, positioning it favorably against Intel [10] - Currently trading at a price-to-earnings ratio of 17, Micron's market cap is $79.4 billion, making it a strong contender to surpass Intel in valuation [11]