Intel stock is trading approximately 0.52% lower at $36.16 as of the time of writing. The stock is down, due to a Reuters report stating that Nvidia has decided not to manufacture its chips using Intel’s 18A node (manufacturing process) after conducting some testing. In response to this report, an Intel spokesperson told Reuters the company’s 18A node is “progressing well,” and that it “continues to see strong interest” for its next-gen node 14A. I have closely followed Intel’s moves this year, and wrot ...

Core Insights - Intel Corporation has reported an alleged embezzlement incident involving over $840,000 at its Israeli operations, referred to as the "chip bandit" [1] - Despite the financial insignificance of this amount relative to Intel's nearly $90 billion market value, it symbolizes a proactive approach to efficiency and accountability under new CEO Lip-Bu Tan [2][3] - Intel's stock is currently trading at a price-to-book (P/B) ratio of approximately 0.84, indicating that the market values the company at less than its accounting assets, suggesting potential undervaluation [3][4] Financial Performance - Intel's market capitalization was approximately $88.18 billion as of late May, with a book value of around $106 billion as of Q1 2025 [4] - The company's shares have seen a 33% decline over the past year, trading around $20.22, with analyst sentiment remaining cautious and a consensus rating of "Reduce" [6] - Intel's Q2 guidance projected breakeven non-GAAP earnings per share (EPS), while ongoing operating losses from Intel Foundry Services (IFS) amounted to $2.3 billion in Q1 [6] Strategic Initiatives - CEO Lip-Bu Tan is leading a turnaround plan focused on efficiency, including aggressive cost-cutting measures and a potential workforce reduction of over 20% [5][8] - Intel is exploring the sale of its Networking and Edge (NEX) unit, which generated $5.8 billion in revenue and $931 million in operating income in 2024, to sharpen focus on core businesses [8] - The company remains committed to its Ohio plant and aims for IFS to reach break-even status by 2027, with ongoing efforts to build customer trust [8] Investment Perspective - The current discount to asset value may provide a significant margin of safety for investors, with considerable downside already priced in [9] - Intel's strategic pivot under new leadership and focus on operational streamlining and divestments highlight a potential long-term investment opportunity [10] - While the turnaround is a multi-year effort, the stock's current P/B discount and strategic groundwork could improve the odds of long-term profit [11]