Investing in Intel, a technology industry giant established in 1968, offers an enticing opportunity for those seeking to participate in the ever-evolving tech sector. As a global leader in chipsets, server boards, and processors, Intel has played a pivotal role in shaping the digital landscape.
This guide will provide you with a comprehensive roadmap for buying Intel (INTC) stock. We’ll start with a step-by-step breakdown of how to buy Intel shares. Following that, we’ll explore alternative investment options for those interested in gaining exposure to Intel without directly purchasing its stock.
How to Buy Intel Stock
Step 1: Open a Brokerage Account
To invest in Intel stock, the first step is to open a brokerage account. In today’s digital age, there’s a multitude of online brokerages and investment apps that make this process accessible, even for those with limited upfront capital. You should choose the type of investment account that aligns with your financial goals. Choices include:
- Individual Retirement Accounts (IRAs): These offer tax advantages for retirement savings.
- 529 Education Savings Accounts: Ideal for education-related expenses, with tax benefits.
- Taxable Investment Accounts: Flexible but lacking tax advantages.
- Custodial Accounts: Designed for minors, like UGMA/UTMA accounts, for future education expenses.
Most brokerages offer IRAs and taxable investment accounts, but finding one that caters to 529 or custodial accounts may require additional research.
Step 2: Decide How Much to Invest
Investing in Intel should be part of a diversified portfolio. To determine your investment amount, consider the following factors:
- Budget: Assess your financial situation, including bills, savings, and discretionary income. Invest only what you can afford without impacting immediate needs.
- INTC Stock Price: Intel’s stock price has been below $50 per share since January 2022, making it accessible for investors. Many platforms allow fractional share investments, enabling you to start with as little as $5.
- Investment Strategy: Choose between lump-sum investing (a single cash infusion) and dollar-cost averaging (periodic, smaller investments, like $20 every Friday).
- Portfolio Diversification: Ensure your portfolio includes diverse assets across various industries. Intel can be an excellent choice if you lack exposure to tech companies or dividend-paying stocks.
Step 3: Research Your Investment
Before committing funds to Intel stock, thorough research is crucial. You should review Intel’s financial statements and future plans. Intel, like other publicly-traded companies, must submit annual (10-K) and quarterly (10-Q) reports to the U.S. Securities and Exchange Commission. You can access these reports on SEC.gov or Intel’s investor relations page.
Step 4: Place an Order
Once you’ve determined your investment amount and completed your research, it’s time to execute your Intel stock purchase:
- Log into your brokerage account and navigate to the trading platform.
- Enter Intel’s ticker symbol (INTC) and specify the number of shares or the desired investment amount.
- Depending on your brokerage, choose between market orders (instant execution at the current price) and limit orders (execution when the stock reaches a set price). Limit orders can be advantageous when anticipating future price drops.
Intel is traded on the Nasdaq stock exchange, with normal trading hours from 9:30 a.m. to 4:00 p.m. ET, Monday through Friday. Some brokerages offer pre-market and after-market trading options.
Step 5: Regularly Review Your Investment’s Performance
To track your investment’s progress, periodically assess its performance relative to competitors like Advanced Micro Devices (AMD) and NVIDIA (NVDA).
Moreover, benchmark its performance against industry indices such as the Dow Jones U.S. Technology Index or the Nasdaq 100.
How to Sell Intel Stock
At some point, you may decide to sell your Intel shares. Here’re the steps:
- Access your brokerage’s trading platform.
- Enter the number of Intel shares you wish to sell.
- Choose between an immediate sale at the current market price or setting a target price for selling.
- It’s prudent to consult a tax professional before selling, as you might incur capital gains tax if you’ve profited from your investment. Proper tax planning can help you estimate and manage potential tax obligations.
Other Investment Options
If you’re interested in gaining exposure to Intel without directly purchasing its stock, several alternative investment options can be explored:
1. Exchange-Traded Funds (ETFs): Intel is included in over 300 ETFs. By investing in these ETFs, you can indirectly own Intel shares while diversifying your portfolio across a broader range of assets. Some notable ETFs that include Intel are the Vanguard Total Stock Market Index Fund (VTI) and the Invesco Dow Jones Industrial Average Dividend ETF (DJD).
2. Mutual Funds: Consider mutual funds with significant holdings in Intel. Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks. Check the fund’s prospectus to ensure it includes Intel in its holdings.
3. Technology Sector Funds: Explore funds that specifically focus on the technology sector. These funds often have allocations to Intel and other tech giants, providing exposure to the broader industry.
4. Direct Stock Purchase Plan (DSPP): After purchasing your first Intel share through a broker, you may be eligible for Intel’s Direct Stock Purchase Plan operated by Computershare Investor Services. This program allows you to buy additional shares directly from Intel, bypassing brokerage fees.
Learn more: Best Investment Options
