This Stock is Up 390% (with More Room to Run), Why Intel Could Be The AI Boom's Sleeping Giant

It’s Wednesday and finally… finally we have some good news!

While the market was pulled in opposite directions by the Nasdaq and the Dow yesterday, Nvidia rebounded from its three-day skid mark as it ended the day up 7%. 

So as you can imagine, most of the stock market degenerate bandwagoners are waking up in way better moods… (Like me). 

(Source: Giphy) 

Now, of course, we don’t know what today will hold…

But one thing is certain: death, taxes, and this morning's fire issue! 

(Source: MakeAMeme.org) 

In today’s write up we have the shocking hair salon stock that went full super saiyan yesterday (up 390%)...

And why Intel could be the most undervalued bargain buy within the AI boom.

Let’s get to it! 

The Hair Salon Stock That Went Full Super Saiyan (Up 390%) 

In light of yesterday’s mixed bag of disappointments and victories, Regis Corporation (NYSE:RGS), the American operator of 5,839 hair salons, decided to show us what a real glow-up looks like. 

(Source: Worldkings) 

This stock didn’t just rise; it went from a modest $4.95 to a jaw-dropping $24.27, marking a whopping 390% increase. That’s right, a hair salon company became the high-flying stock of the day—something no one saw coming. 

But what exactly caused this unexpected Cinderella surprise? Well what initially lit the match was when Regis Corporation announced a new senior secured credit facility with TCW Asset Management. 

(Source: MarketWatch) 

Basically, they’re refinancing their existing debt with a $105 million term loan, reducing their outstanding indebtedness by over $80 million and saving about $7 million in cash interest every year. Think of it as Regis getting a financial makeover that would make even Queer Eye’s Fab Five proud.

(Source: Giphy) 

This new deal also includes a $25 million revolving credit facility, both maturing in 2029. This refinancing move is a big step in strengthening Regis’s financial position, giving them more flexibility and reducing their debt burden. 

However, Regis Corporation isn’t just about snipping and styling hair. They operate and franchise a slew of hair care salons across North America under two main segments: Franchise Salons and Company-Owned Salons. 

They offer a variety of services like haircuts, styling, and coloring, and sell a range of hair care and beauty products. They even run accredited cosmetology schools, solidifying their presence in the beauty industry like TikTok solidified itself as the hub for viral (and cringey) dance trends.

(Source: Giphy) 

Yet given the extra breathing room in their financial situation,  it hasn’t all been blowouts and highlights for Regis. Their revenue has been on a steady decline, dropping from $99.1 million in Q2 2021 to $49.1 million in Q1 2024. But with this new financial restructuring, they’re hoping to turn things around and maybe even bring back the mullet… hehe.

Now keep in mind, before this financial facelift, Regis’s stock was down nearly 50% year-to-date. But yesterday’s surge flipped the script, pushing the stock to a 109.21% gain for the year. Not bad at all…

(Source: Google Finance) 

Obviously, the stock’s wild swings can be attributed to its small float and historically low trading volume. With an average volume of just 15,000 shares, the stock traded over 30 million shares yesterday resulting in a surprising shake up in supply and demand for Regis shares.  

But given the 390% explosion yesterday, the main question is… Is there more room for Regis to run?

Well given the momentum and the fresh financial outlook, it’s possible. But let’s not forget that this stock has a history of being as volatile as Kanye West’s mood swings. 

(Source: Giphy) 

The recent surge is driven by a significant financial restructuring, which is promising, but the company’s volatile trading history means we could see even more wild price action… 

And while Regis Corporation’s 390% rise is nothing short of a hair-raising experience, it’s definitely not a perm-anent (see what I did there) sign of continued momentum.  

It’s no secret, the financial makeover has given Regis a new lease on life, it’s essential to keep an eye on the fundamentals and be prepared for more ups and downs. But even still… who knew a hair salon company could become the stock market’s hottest ticket? 

Intel: The Sleeping Giant in the AI Frenzy

An interesting take: While the world loses its collective mind over Nvidia and its shiny AI chips, Intel is quietly plotting a comeback that could make even the most jaded investor do a double take. 

(Source: Wired) 

This isn’t just a company making processors for your grandma's laptop anymore; Intel's got some serious game in the AI arena. But could this overlooked giant be the best bargain buy in the tech world right now? Let’s find out… 

Intel recently dropped the Gaudi 3 AI chip, and apparently it’s an absolute beast. 

(Source: The National) 

According to Intel, Gaudi 3 can be trained 40% faster than Nvidia's H100 AI chips. It’s like comparing Usain Bolt to a middle school sprinter (which is insane). Gaudi 3’s inferencing speed is twice as fast as the H100 and 1.5 times quicker than Nvidia’s more advanced H200. And in terms of bang for your buck, Gaudi 3 offers over twice the performance per dollar. Think, getting a Lamborghini for the price of a Honda Civic.

(Source: Giphy) 

So given the speed edge Intel’s Gaudi 3 holds, it’s very likely that the revenue it brings in could end up exploding over the next six months. Yet, most analysts haven’t seemed to take notice… especially in light of Intel’s notebook sales, which according to Citi, has jumped 15% over the last month. 

Which is kind of a big deal since Intel pockets a hefty 37% of its revenue from notebook chips.

(Source: Tenor)  

Moreover, the real potential that Intel holds is within AI PC’s. Statista estimates that AI PCs will account for 19% of all PCs shipped globally this year, climbing to 53% by 2026. Since Intel dominates the PC chip market, they’re poised to rake in the cash as AI PCs become the norm. 

But this is only the beginning, because according to experts Intel is the only company with ASML's next-gen High-NA EUV machines, capable of producing sub-2nm silicon. 

(Source: Data Center Dynamics)

In plain English: Intel’s machines are like the Holy Grail of chip manufacturing, and no one else will get them until 2026. Microsoft and Qualcomm have already signed up to use Intel's upcoming 18A node, and it’s only a matter of time before others like Nvidia and Apple join the party.  

(Source: The Verge) 

However, despite all this massive potential, Intel is still trading at a laughably low valuation. Its enterprise value/EBITDA ratio is just 13.5. To put that into perspective, it’s like finding a mint-condition Pokémon card in your neighbor’s next garage sale. 

(Source: Giphy) 

And while Analysts expect Intel’s earnings per share to jump from $1.02 this year to $1.81 next year… with its AI chips and manufacturing prowess in the mix, these estimates might still be heavily conservative.

So what’s the takeaway from this? 

Well it appears that Intel is like that one friend who quietly got jacked over the summer while everyone else was focused on chugging beers and chasing steers.The company is well-positioned to benefit immensely from the AI era, yet it’s trading at a fraction of its potential value. 

So before you rush to buy more Nvidia or AMD, take a closer look at Intel, because if you’re looking for a stock with potentially seismic upside, Intel could be just the guy. In fact, given the fact Intel is trading at 1999 levels, this could be like getting into Nvidia before the AI boom… except this time, you’re in on the secret. 

(Source: Giphy) 

Stocks.News holds positions in Apple, Intel, and Microsoft as mentioned in the article.