Case Study on Intel’s Stock Investment: Is it Still Worth to Invest in Intel Stock?
Dr Yeoh Wee Win
School of Business, IPK College, Penang
Keywords:
Intel, NASDAQ market index, CAPM, stock return, comparative analysis.
Abstract
The case study analysis had been focusing on expanding the understanding on the Intel’s stock investment where the current business of Intel had been facing many challenges from the industry as well as the recent economy. The dominant of Intel’s business had been threatened by the rising competitors which put the investors in doubt on the decision in investing in Intel’s stock (INTC). Therefore, this study had been motivated to investigate the worthiness of the investment return from the Intel’s stock investment. Based on the reflection of the literature review, the ideal model to include for the comparative analysis had target the comparison drawn against the market index as well as the CAPM estimation model. With this, the quantitative analysis method had been put into the practice where the comparative analysis method will assist the study to explore the quantitative data based on the five years’ historical performance from 2018 to 2022 for the Intel’s stock return, NASDAQ market return as well as the expected return derived from the CAPM. The findings of the study had provided strong suggestion on the highlight for the underperformance for the Intel’s stock price over the past five years’ trend. This is because the return of Intel’s stock is significantly lower in comparison against the market return of NASDAQ and the expected return by CAPM. In short, the investment for Intel may not be worthy for the current timeline as the investors may experience higher risk of the Intel’s stock investment which is not reasonably compensate by the higher premium return. Therefore, the investment for Intel may not be recommended to the investors as investors should seek for other alternative investment opportunity.
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