Profit Pregame

Major Chip Maker Eyes a Brighter Future with New Leadership

One company is hoping that bringing in a familiar face will turn things around after a troubled 2020.

What’s happening?

The big news coming out of the tech world this week is a shakeup at the top for a major semiconductor company.

Intel Corporation (INTC) has announced that their current CEO, Bob Swan, will be stepping down on February 15. His replacement will be Pat Gelsinger, the CEO of VMware.

While Intel has said that the move is unrelated to the company’s financial performance in 2020, a change of leadership should be expected after such a rough year – one which Bob Swan called “the most challenging” in his career.

In July, disruptions in production caused by COVID-19 forced Intel to announce that their highly anticipated smaller, more powerful 7-nanometer chips would not be ready for distribution until late 2022 – a full year behind the original schedule.

With Intel’s competitor Advanced Micro Devices (AMD) already offering their own line of 7-nanometer chips, investors punished INTC stock, as many saw the delay as a great opportunity for AMD to pick up significant market share.

The question now for investors is whether the change of CEO will be enough to right the ship for Intel.

Where’s the money?

Pat Gelsinger is no stranger to Intel. In fact, he began his career with a 30-year stint at Intel – serving as the company’s first chief technology officer – before moving on to VMware.

Intel is hoping that familiarity will allow Gelsinger to hit the ground running, as they’re already looking to provide a more positive update on the progress of its 7-nanometer chips when it reports its fourth quarter earnings on January 21.

The announcement of the change is already having a positive effect on INTC stock, as shares rose more than $5 after the news broke.

We’ve seen a bunch of call options activity in the last week, indicating that Intel could go higher. One of my 1450 Club members told me he made $3,000 in one day on my suggestion to buy Intel calls. Congrats to any of you that rode that wave to profits.

Scooping up Intel stock here while it still hasn’t fully recovered from the beating it took in 2020 is tempting. But I’ve got another idea on the best way to play this…

How do I get some?

If you know me, you know I love buying stocks at a discount. So, jumping into INTC now while they’re up big wouldn’t be my preferred trade right now.

If you want my favorite stock in the technology sector, I think the best way to play the space is FireEye, Inc. (FEYE). I love the cybersecurity space, and the alarming rise in hacking attacks has put a huge emphasis on network security.

Plus, if Intel is able to improve upon their timeline for bringing their newest chips to market, that can only mean more devices and more connections which need to be secured against increasingly sophisticated attacks.

I believe we’re going to see some really strong growth off of FEYE’s current levels in the months and years to come.

In the Spotlight: The skies are getting friendlier…

Shares of JetBlue (JBLU) and American Airlines (AAL) got a boost yesterday on the news of their strategic partnership to offer more routes, including new destinations in Tel Aviv and Athens.

JetBlue even went as far as to say they’ll be reactivating aircraft that would have otherwise been idle as a part of the new initiative.

While travel demand still hasn’t returned to anything near normal yet, airlines are starting to see the light at the end of the tunnel – and they’re making big plans to take advantage of it.

I don’t believe this will be the last of the partnerships and even acquisitions we’ll see in the airline industry, so stay tuned and I’ll be sure to bring you my take on all of the big travel news as it happens.

Most People Don’t Realize This, But…

Every year, 584,000 Americans make their first $1 million… that’s 1,600 people PER DAY.

And if you’re not already one of them, one colleague of mine is on a mission to change that.

His name is Abe Wagner, and he’s a former UFC fighter turned entrepreneur…

Today, he makes $300K/month working less than four hours per day – and on Thursday, January 21, at 1:00 p.m. EST, he’ll show you exactly what it takes to get there.

Click here now to get access to the 1600 Success Summit.

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