3 Once-In-a-Generation Buying Opportunities In the Nasdaq Bear Market

3 Once-In-a-Generation Buying Opportunities In the Nasdaq Bear Market

You may not see these game-changing stocks this cheap ever again.

There’s little question that 2022 is set to go down as once of the most challenging years for investors on record. Through the first six months of the year, the benchmark S&P 500 produced its worst return since 1970. That doesn’t happen by accident. It’s a function of historically high inflation, persistent supply chain problems, and a weakening U.S. economy.

Things have been even worse for the tech-centric Nasdaq Composite ( ^IXIC -0.90%), which has lost as much as 34% of its value on a peak-to-trough basis since hitting its closing high in November. The magnitude of the Nasdaq’s decline has kept the widely followed index firmly entrenched in a bear market . Image source: Getty Images. However, peril on Wall Street often begets opportunity . That’s because every significant decline in the major indexes throughout history (including the Nasdaq Composite) has eventually been put into the rearview mirror by a bull market rally. Sometimes, bear markets roll out the red carpet for patient investors and offer once-in-a-generation buying opportunities. What follows are three beaten-down companies that have once-in-a-generation buying appeal for long-term investors. Intel

The first buying opportunity you may never see again is the chance to load up on shares of semiconductor giant Intel ( INTC 1.39%) below $30.

To be fair, Intel and its semiconductor peers are facing a mountain of headwinds at the moment. Supply chain issues and historically high inflation are doing a number on enterprise demand. Meanwhile, the return of workers to the office has lowered demand for personal computers (PCs).

In spite of these challenges, Intel and its 5.1% dividend yield could be a phenomenal buy for patient investors.

To begin with, rumors of Intel’s demise appear to be greatly exaggerated . Based on data compiled by Mercury Research for the first quarter of 2022, Intel held 88.4% of server central processing unit (CPU) market share, along with an 81.7% share of desktop PC PCUs, and a 77.5% share of mobile PCUs (excluding Internet of Things devices). Even with Advanced Micro Devices slightly chipping away at its market share in server and mobile PCUs, it’s evident that Intel’s top-dog status in processors will continue to be a source of incredible cash flow for the company.

To add to this point, businesses have been shifting data into the cloud at an accelerated pace in the wake of the COVID-19 pandemic. This bodes well for data-center server demand for years to come.

Another significant tailwind for Intel is the recent passage of the CHIPS and Science Act, which President Joe Biden signed into law last month. The CHIPS Act will provide nearly $53 billion in subsidies to chip manufacturers and designers so they can build facilities to produce and hire domestically. As businesses, homes, and cars become more technologically dependent, the need to manufacture semiconductor solutions is only going to climb. That’s a key impetus behind Intel’s $20 billion investment to build two manufacturing plants in Ohio.

Intel should also benefit from the eventual spinoff and initial public offering (IPO) of autonomous vehicle company Mobileye. Even with a lowered valuation of $30 billion for its upcoming IPO, this would be nearly double what Intel paid for Mobileye ($15.3 billion) five years ago. Mobileye’s revenue hit a record $460 million (up 41%) in the second quarter.

Although it’s struggling mightily amid economic uncertainty, now is the ideal time to pick up an absolutely dominant cash flow giant like Intel on the cheap. Planet 13 Holdings

For the second once-in-a-generation buying opportunity, look no further than the U.S. cannabis space — specifically, small-cap multi-state operator (MSO) Planet 13 Holdings ( PLNH.F -7.81%), which can be purchased for a little over $1 per share.

In February 2021, marijuana stocks were all the buzz. Democrats narrowly taking hold of Congress following Joe Biden’s victory in November appeared to pave the way for cannabis to be legalized at the federal level. But after 20 months in the Oval Office, Biden is no closer to signing marijuana reform bills into law than was his predecessor, Donald Trump. Wall Street has not been happy with the lack of progress on the reform front, and U.S. marijuana stocks have paid the price.

However, a lack of federal reform hasn’t stopped individual states from giving the green light to medical marijuana and/or adult-use consumption. Roughly three-quarters of all U.S. states allow cannabis use in some form. With favorability to marijuana steadily improving over decades, federal reform is still likely sooner than later.

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