Stock of the Week: Intel

Electric air taxis?

Andrew Willis 19 April, 2021 | 4:38AM
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Andrew Willis: With so much attention on electric cars lately, we’d be remiss to forget about electric aircraft…Yep, you heard me right – five-seaters already flying around, quietly, quickly and efficiently.

And at the top of the list of investors, we have Intel (INTC)’s investment wing. We found this out in new research released earlier this month on the brand new eVTOL or electric vehicle take-off-and-landing industry, from Morningstar Pitchbook. Senior analyst for emerging tech research, Asad Hussain says the industry is on track to reach more than a hundred and fifty billion US dollars in revenue by 2035.

Intel is joined by the likes of Toyota, United Airlines, Boeing, Tencent, and early Tesla investor Baillie Gifford. While the future seems bright for the industry, Hussain says investors may underestimate the complexity and variety of constraints around getting the electric air taxi space to take off.

In these very early stages of development, however, investments allow companies like Intel to establish themselves as key suppliers in the industry. We see an opportunity for Intel to supply important software, automation and cloud computing capabilities for future flying fleets. 

We are maintaining our fair value estimate while we wait for plans to lift off, but it’s safe to say that Intel remains at the core of future technologies.

For Morningstar, I’m Andrew Willis

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Intel Corp53.00 USD-5.29Rating

About Author

Andrew Willis

Andrew Willis  is Content Editor for Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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