Why Intel Became Our Top Pick in a Skeptical Tech Market

The tech selloff last Friday wasn't about companies spending too much - it was about them spending without clear returns. Investors are tired of hearing about meeting demand when profits are nowhere in sight. That's why we've been quietly shifting our Charitable Trust away from traditional semiconductors, software, and data centers toward tech-infused areas like pharma and aerospace. And we made Intel our focal point, not Nvidia.

The shift comes down to a simple change in how data centers are built. When Lip-Bu Tan took over as Intel's CEO, the ratio of GPUs to CPUs was roughly four to one. Now it's nearly one to one, and soon it could be four CPUs for every GPU. Gross margins are far higher on GPUs, but a well-run Intel can compete. Tan knows how to spend wisely on foundries and packaging - the bundling of chips that's become critical as Moore's Law runs its course. We bought Intel expecting an upside surprise, and we got one: shares jumped over 10% after hours.

Friday's brutal selloff, which dragged Intel down nearly 8%, wasn't about the company's performance. It was about a broader market losing patience with hyperscalers that keep raising capital spending without showing profits. Apple stands alone as the exception. But Intel offers a different story: the next wave of demand may come from AI agents and robots, both of which run on CPUs, not just GPUs. Robots are a massive B2B and eventually B2C market, and Intel's chips are packed inside. Whether this week's earnings from Amazon, Meta, Microsoft, and Apple change the mood remains to be seen. But for now, Intel is our bet on old tech with a new purpose.

Source: CNBC