Intel stock is down 60% this year.In this video, I will cover the recent updates regarding Intel (INTC 3.87%) and explain why I remain bullish on the company. Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Sept. 13, 2024. The video was published on Sept. 14, 2024. ...

Key TakeawaysIntel shares have taken a hit in recent months amid worries about the chipmaker’s ability to engineer a turnaround. The company is reportedly considering a number of strategic options that could include selling parts of its business and scrapping some projects. However, Intel’s moves to shed assets could hamper its efforts to compete with rivals.Wall Street's typical rating on the stock is a "hold," though the mean analyst price target implies some optimism. Intel's (INTC) stock, once a tech d ...

The most recent trading session ended with Intel (INTC) standing at $19.36, reflecting a -1.43% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.75%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1%.Shares of the world's largest chipmaker witnessed a loss of 1.41% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.48% and the S&P 500's ...

Secretary of Commerce Gina Raimondo listens as President Joe Biden participates virtually in a meeting on the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act at the White House on July 25, 2022.Intel has been badly beaten down of late, losing 60% of its value this year as it struggles to find its way in the booming artificial intelligence market while aggressively building out fabs in the U.S. The company is turning to Commerce Secretary Gina Raimondo for help..In a recent meet ...

Core Viewpoint - Intel Corporation is undergoing significant restructuring under CEO Pat Gelsinger to address intense competition and financial struggles, with a focus on a new reorganization strategy that may include asset divestitures and cost-cutting measures [2][3][5]. Group 1: Financial Performance and Challenges - Intel's stock has declined over 60% year-to-date, with a current price around $19, far from its 2021 high of approximately $70 [2]. - The company reported a revenue of $12.8 billion for Q2 2024, down 1% year-over-year, and net income has plummeted from $21.05 billion in 2019 to just $1.67 billion in 2023 [5][6]. - Intel suspended its quarterly dividend due to dwindling profits and free cash flow, indicating severe financial distress [5]. Group 2: Restructuring and Strategic Initiatives - Intel announced a cost-reduction program aiming to cut spending by $10 billion by 2025, which includes reducing its workforce by nearly 15% [3][4]. - The IDM 2.0 strategy was launched to enhance manufacturing capabilities and compete with rivals like AMD and Nvidia [4]. - Intel is venturing into the foundry business, previously avoided, to manufacture chips for other companies, aiming to recover market share [4]. Group 3: Future Outlook and Potential - The upcoming 18A chip, expected to enter mass production in 2025, is anticipated to be a significant technological advancement for Intel [8]. - The global PC market is showing signs of recovery, with shipments growing 3.1% year-over-year in Q2 2024, which could benefit Intel's CPU business [8]. - Intel aims to generate over $4 billion in sales from AI chips in 2024, positioning itself as a competitor to Nvidia in the AI space [8]. Group 4: Valuation and Investment Considerations - Intel is currently valued at a forward price-to-sales multiple of 1.8, significantly lower than Nvidia's 23.35 and AMD's 9.39, indicating potential for upside if financial performance improves [9]. - A discounted cash flow model suggests a fair value of $30.30 per share, implying a potential upside of nearly 60% from current levels [10]. - The projected revenue growth for Intel shows a gradual recovery, with expected revenues of $52.06 billion in 2024 and $66.64 billion by 2028 [11].

INDIA - 2024/09/03: In this photo illustration, an Intel logo seen displayed on a smartphone with a ... [+] flag of South Korea in the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesIntel stock (NASDAQ: INTC) is trading at about $19 per share, its lowest point in over a decade. Could the stock rise by over 3x per share in the next few years? Does this sound a bit ridiculous? Consider this - Intel stock was trading at levels of ...

Company Performance - Intel has experienced a significant decline in market share and financial performance over the past two decades, with its stock posting a negative total return since Jan 1, 2000 [1] - Revenue has dropped to $55 billion over the last 12 months, down from close to $80 billion a few years ago, despite the booming semiconductor market due to AI [4] - Free cash flow has been negative for close to two years, with a negative $12 billion over the trailing 12-month period, marking a stark contrast to the 25 years prior when Intel consistently generated positive free cash flow [4] Market Share and Competition - Intel has lost significant market share to design-only firms like Nvidia and Advanced Micro Devices, as well as to Taiwan Semiconductor Manufacturing (TSMC) [1][2] - TSMC's foundry model, focusing solely on manufacturing, has allowed it to move quickly and reinvest earnings from hundreds of design customers, leading to advancements in semiconductor technology [2] - Intel's reluctance to abandon its vertically integrated model of both designing and manufacturing chips has caused it to fall behind TSMC, especially after TSMC embraced extreme ultraviolet lithography (EUV) systems from ASML [2] - Even Apple, a major player in Silicon Valley, has become a significant customer for TSMC, further eroding Intel's market position [3] Strategic Shifts and Challenges - Intel has recently begun to embrace the foundry model, planning to manufacture chips for third-party design customers and investing tens of billions of dollars in new manufacturing facilities, primarily in the United States and Europe [5] - The US government is planning to provide $19.5 billion in grants under the CHIPS Act to support Intel's efforts, although the funding has not yet been received [5] - Despite these efforts, Intel's foundry business is currently underperforming, with last quarter's sales at $4.3 billion and an operating loss of $2.8 billion, indicating a need for significant revenue growth to achieve profitability [5] Investor Sentiment and Future Outlook - Investors are increasingly pessimistic about Intel's ability to compete in both design and foundry segments, with the foundry business lagging far behind TSMC [6] - Intel's stock is down 72.5% from its 10-year high, reflecting the company's struggles and the lack of momentum in its foundry segment [6] - The company's future remains uncertain, with no guaranteed winner in modern semiconductor manufacturing, and Intel's ability to recover from its current challenges is unclear [6]

Taiwan Semiconductor Manufacturing stock looks set to benefit from Intel's troubles.Intel's (INTC -0.47%) foundry business recently suffered a major setback after it was revealed that chipmaker Broadcom determined that Intel's newest chip manufacturing process, called 18A, could not execute large-scale production of its chips at the quality standards that Broadcom required. Intel launched its foundry business, which manufactures chips for third parties, in 2021. While this is disappointing news for Intel, i ...

Investment Thesis - Intel Corporation (INTC) has lost around 37% of its value since mid-June, and the stock remains significantly overvalued [1] - The company's capital-intensive business model is inefficient compared to fabless players like NVIDIA (NVDA) and Advanced Micro Devices (AMD) [1] - Intel's strategic decision-making has apparent flaws, and the company is weaker positioned to compete with more flexible and aggressive rivals [1] Recent Developments - Intel's latest quarterly earnings underperformed consensus estimates, marking the second consecutive quarter of missed revenue forecasts [2] - Revenue declined by 1% YoY, and adjusted EPS deteriorated from $0.13 to $0.02 [2] Balance Sheet Analysis - Intel's total outstanding debt is $53 billion, which is more than $20 billion higher than its outstanding cash [3] - The company's balance sheet is weaker compared to NVDA and AMD, with NVDA having a massive net cash position and AMD's balance sheet being much cleaner [3] - Intel's total debt to equity ratio is 44.03%, significantly higher than AMD's 3.97% and NVDA's 17.22% [4] Profitability and Business Model - Intel's operating margin and EBITDA margin remain significantly lower compared to historical levels, despite the AI-driven boom in the industry [5] - The fabless business model of NVDA and AMD appears more efficient in driving growth and innovation, with NVDA's TTM revenue now almost two times higher than Intel's [5] - Analysts from Citi suggest that Intel should exit the foundry business to improve efficiency [5] Wall Street Sentiment - Prominent Wall Street firms, including JPMorgan Chase, Goldman Sachs, and Bank of America, have downgraded Intel to "Sell" following its latest earnings report [6][7] - The sentiment around Intel's next quarterly earnings release is pessimistic, with 32 downward EPS revisions over the last 90 days [9] Upcoming Earnings - Quarterly revenue for the upcoming earnings release is expected to be $13.06 billion, almost 8% lower YoY [9] - Adjusted EPS is expected to plunge from $0.41 to -$0.03 [9] Strategic Decisions - Intel's acquisition of Mobileye Global Inc (MBLY) for $15.3 billion has not paid off, with MBLY losing around 70% of its value since the acquisition [11] - Intel is considering selling more shares of MBLY, indicating potential flaws in the due diligence process before the acquisition [11] Valuation - Intel's stock has declined by more than 60% YTD, significantly underperforming the broader U.S. market and the iShares Semiconductor ETF (SOXX) [12] - The company has a "D+" valuation grade from Seeking Alpha Quant, with a forward non-GAAP P/E ratio of 72.95, indicating significant overvaluation [12] Discounted Cash Flow (DCF) Analysis - Intel's fair value is estimated to be below its current market capitalization, even after incorporating an unrealistic FCF margin expansion trajectory [16][17] - The DCF model suggests that Intel is still around 30% overvalued, with a -28% upside potential [16] Seasonality and Short-Term Outlook - Intel's stock historically performs better closer to the year-end, suggesting a potential short-term rally in the coming months [18] - Despite fundamental weaknesses, Intel's stock rallied by 90% in 2023, driven by the AI boom in the stock market [19] Bottom Line - Intel remains a "Strong Sell" due to significant overvaluation, a weaker balance sheet compared to rivals, and deteriorating profitability [20] - The company's CAPEX-heavy business model limits its ability to focus resources on growth and innovation [20]

Core Viewpoint - Mobileye Global Inc. has experienced a significant decline in its investment thesis over the past year, with the stock price dropping substantially and Intel rumored to be considering selling its large stake in the company [1][2]. Group 1: Recent Developments - In September, Mobileye canceled its internal Lidar development and is reportedly facing Intel's potential sale of its 88% stake, which poses a significant overhang on the stock [2]. - The company plans to cut 100 employees by year-end and has forecasted Lidar R&D costs for 2024 at $60 million, which includes $5 million in stock-based compensation [2]. - Mobileye's R&D expenses were $256 million in Q2 '24 and $499 million in the first half of the year, indicating that the planned cuts represent only 6% of the total spending [2]. Group 2: Financial Performance - Mobileye reported a 3% year-over-year decline in Q2 revenues and has reduced its 2024 revenue guidance to $1.64 billion from a previous estimate of $1.895 billion, attributing the challenges to macroeconomic conditions in China [4]. - The company has lowered its EyeQ sales estimates by 3.5 million units for the second half of the year, and it is currently near cash flow breakeven [4]. - Despite the setbacks, analysts project a sales increase to $2.2 billion in 2025, with 2023 sales reaching nearly $2.1 billion [4]. Group 3: Market Position and Valuation - Mobileye's stock is currently trading at around 5x forward sales targets of $2 billion, down from previous multiples exceeding 12x forward EV/S [5]. - The company has a valuation of $10 billion, which suggests a disconnect in the market, especially considering the potential acquisition of a Lidar technology leader like Innoviz Technologies, valued at $100 million [2]. - The major concern remains Intel's potential sale of shares, which could significantly impact the stock given that Intel controls a large portion of the outstanding shares [5][6]. Group 4: Future Outlook - The investment stance on Mobileye is currently Neutral, with the company needing to demonstrate a turnaround in its business before being considered a Buy [6]. - Despite the challenges, Mobileye still has a promising future in advanced driver-assistance systems (ADAS) and autonomous vehicles (AVs) [6].