Core Insights - Intel's first-quarter results showed flat revenue of $12.7 billion, with adjusted EPS down 28% to $0.13, disappointing investors despite surpassing analyst expectations [1][8] - The company's stock has declined over 40% in the past year, reflecting ongoing struggles in the semiconductor market [1] Revenue Performance - Intel's product revenue decreased by 3% to $11.8 billion, with the client computing group (CCG) down 8% to $7.6 billion, while data center and AI (DCAI) revenue increased by 8% to $4.1 billion [4][6] - The foundry business saw a revenue increase of 7% to $4.7 billion, but it continues to incur significant losses, reporting an operating loss of $2.3 billion [5][6] Operating Metrics - Gross margins fell by 410 basis points from 41% to 36.9%, impacted by pressures in the foundry, CCG, and DCAI segments [6] - Operating cash flow for the quarter was $813 million, while capital expenditures totaled $5.2 billion, indicating continued investment in the foundry business [7] Future Guidance - Intel forecasts Q2 revenue between $11.2 billion and $12.4 billion, which is below analyst expectations of $12.8 billion, suggesting a potential year-over-year decline of about 8% [8] - The company plans to cut operating expenses to $17 billion this year and $16 billion by 2026, alongside a $2 billion reduction in capital expenditures [9] Strategic Outlook - Intel aims to refine its AI strategy to develop full-stack AI solutions, although it faces significant competition from Nvidia [11] - Despite current challenges, Intel's core business remains steady, and the company has substantial physical assets from its investments in foundry operations, having spent over $200 billion in capital expenditures over the past two years [12][13] Investment Considerations - Intel's stock trades at a price to tangible book value (TBV) ratio of 1.2, suggesting that investors can acquire shares at approximately the value of its physical assets [13] - There is potential for value appreciation in Intel's stock, and investors may consider accumulating shares during price dips [15]