2 Legacy Stocks for Long-Term Investing

Why It Matters

Intel’s resurgence, fueled by U.S. government backing and AI‑driven demand, reshapes the domestic semiconductor landscape and offers investors a rare legacy stock with upside potential.

Key Takeaways

• Intel received $8B grants and $11B low‑interest loans from U.S. government.
• Q1 revenue hit $13.6B, beating estimates and forecasting $14B‑$15B.
• Server CPU (Xeon 6) sales surged, driving AI and data‑center growth.
• U.S. stake gives government ~10% ownership, valuing Intel near $37B.
• Geopolitical shift reduces reliance on Taiwan, boosting domestic chip production.

Summary

The podcast focuses on Intel as a legacy stock that has re‑emerged as a strategic U.S. asset. After years of underperformance, the chipmaker secured a massive government package under the CHIPS Act—$8 billion in grants, $11 billion in low‑interest loans, and tax credits—while the U.S. Treasury took a roughly 10% equity stake, valuing the company at about $37 billion. Key data points include Q1 revenue of $13.6 billion, well above analysts’ $12.4 billion forecast, and a guidance range of $13.8‑$14.8 billion for the next quarter. Gross margins expanded by 6.5 percentage points, and the server‑CPU segment, especially the new Xeon 6 line, drove a 22% year‑over‑year jump in data‑center and AI revenue to $5.1 billion. Major contracts with Google and Tesla’s Terrafab project underscore Intel’s role in the domestic AI supply chain. The hosts highlight that Intel’s U.S. manufacturing base mitigates geopolitical risk tied to Taiwan’s semiconductor dominance. By positioning itself as the primary U.S. fab, Intel can capture government‑backed funding and avoid supply‑chain disruptions, while its Xeon 6 chips claim twice the reasoning speed of competing CPUs in agentic AI workloads. The discussion also contrasts Intel’s manufacturing focus with Nvidia’s design‑only model, emphasizing the strategic importance of a domestic chip producer. For investors, the turnaround signals a potential multi‑year growth story anchored by policy support, AI demand, and a re‑balanced global supply chain. The stock’s four‑fold rally since its 2020 lows suggests that early‑stage believers could see outsized returns, though valuation remains near historic highs. The episode concludes with a cautious optimism about holding Intel amid ongoing AI and geopolitical dynamics.

Original Description

With all the talk of IPOs and upstarts, it’s a great time to remember that legacy players can still pack a punch. This week, we look at two companies that have been on public markets for decades and have been all over the headlines lately: Intel(NASDAQ: INTC) and Berkshire Hathaway (NYSE: BRK.B).

Intel has been on the Stock Club radar for about nine months, when it was first pitched by Clem Chambers. Since then, it’s up more than 270%, driven by many of the factors he predicted like outsized chip demand, a push to deconsolidate manufacturing capacity, and increased government investment. It’s a pretty monumental occasion, considering this is the first time Intel has reached an all-time high since the dot-com bubble.

In its most recent quarter, Intel reported revenue of $13.6 billion, well above estimates of $12.4 billion, while also delivering a significant expansion in gross margins and raising its revenue forecast. Definitely a stock worth a look if you can get past the valuation.

Berkshire is in the news for a completely different reason: its new CEO, Greg Abel. While Abel assumed the role in January, this will be his first annual meeting – arguably Berkshire’s most beloved tradition.

Compared to Warren Buffett, Abel is expected to take a more hands-on approach, often touring facilities across the company’s many subsidiaries and favoring direct involvement in operations.

So far in his tenure, he’s accomplished four notable things:

- First, on his first day as CEO, he closed Berkshire’s $9.7 billion acquisition of OxyChem, Occidental’s chemical subsidiary.

- Second, on March 4th, Berkshire resumed share buybacks for the first time since May 2024, repurchasing about $226 million of stock. Clearly, Abel sees Berkshire itself as a buy and wouldn’t deploy that kind of capital otherwise.

- Third, he personally invested his entire $15.3 million after-tax salary into Berkshire Class B shares.

- Finally, he invested $1.8 billion into Tokio Marine, taking Berkshire’s total Japanese equity exposure above $46 billion.

We’ll certainly be tuning in to the annual meeting on May 2nd.

We wrap by telling you which one we’d invest $10K in.

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00:00 Intro

01:53 Two Legacy Picks

03:29 Intel Turnaround Setup

05:05 CHIPS Act Boost

08:14 Q1 Earnings Surge

15:00 Buy Sell Or Regret

17:45 Berkshire AGM Story

20:05 Succession To Greg Abel and

32:48 Operator Versus Investor

40:34 Warren Buffet’s Japan Trade Playbook

42:03 $10k Pick