Yo, Pit Crazies,

The chips are down – again!

Intel Corp (Ticker: INTC) was disappointed again for the fifth time in a row. 

That is not a good story to tell. Everything about their earnings report was full of sadness as the behemoth chip maker tries to turn the ship around and catch Advanced Micro Devices Inc. (Ticker: AMD) and Nvidia Corp. (Ticker: NVDA).

I have an interesting comparison of two stocks in 2022.

INTC and Chevron Corp (Ticker: CVX) Are Both Dinosaurs, Yet …

CVX managed to return 40% to shareholders for 2022 … INTC was down 41%.

I did not have the decimation of INTC’s business on my bingo card after chip shortages through most of 2021. Many Big Oil companies are benefiting from a robust repricing of oil thanks to the green policies here and abroad.

Economics still works. When something is scarce, the price goes up. INTC was $55 at the beginning of 2022 and, as far as I know, the dividend is still intact.

The company is saying they might lose money in the first quarter, which sounds crazy. CVX, on the other hand, is not, as the move to any kind of Green Energy will require massive amounts of fossil fuels.

A big chip spending bill went through Congress this last year and it did not help INTC, at least not now at the same time Congress railed at Big Oil.

CVX yearly performance on top with INTC purple line.

INTC is still too much of a mess to touch now, but not unlike the oil companies the big blue chips tend to stage comebacks.

To Your Trading Success,

AG