Those who generally view everything very negatively believe that the company is heading for bankruptcy.
Are there any serious, rational arguments that Intel could soon go bankrupt? That would be the worst case scenario and I don't think it will happen.
7 replies (most recent on top)
I highly recommend against putting money in $INTC. If you are an employee and you have more than a few percent of your total investable portfolio in Intel you lack diversification and on top of that, with your pay tied to the same company your risk is even higher.
Look at the forward earnings estimates for 2023 and 2024 here. Investing in Intel for a dividend is like picking up pennies in front of a steam roller. Unwise.
https://www.zacks.com/stock/chart/INTC/price-consensus-eps-surprise-chart
Bankruptcy? I was seriously considering putting some money for the dividend at $26/shr. Isn’t the revenue for this fiscal year close to $60B? Aren’t the cuts part of the turn around plan? Chips act, mobileeye ipo, …..should boost the stock price and dividend perhaps? Isn’t Pat the messiah for Intel?
What am I missing?
It really is quite remarkable to see how quickly things have gone down hill. x86 lost out to ARM across the board for low power. TSMC has lower cost and better discipline when it comes to new process nodes. This means Intel is getting hollowed out from 'below' (fab) and above (customers building their own ARM based parts).
No, Intel still makes a profit it's just not enough profit.
Sadly Pat is delusional and fanatical.
The worst case scenario is product gets spun out in a couple years as IDM complete failure is demonstrated on Intel4. As to the fabs government funds the IFS and each fab site is slowly ramped down and closed leaving a very small and consolidated and expensive Lockheed Martin Boeing military industrial complex doing expensive low volume chips for the government. Likely that company will get a restricted technology license from one of the standing Foundrys
The Apples, Microsoft, AMD, Qualcomm and Intel Product will use the high volume cost effective commercial foundries.
Pat and his strategy is thinking from the 90s and thinks it is Andy and Gordon’s Intel he inherited and is battling The AMD, Motorola, Sun, DEC and IBM of the 90s.
Sadly he is battling TSMC and Samsung who tower over intel in technology and manufacturing scale and commercial ecosystem.
Intel on the x86 / graphics product side he is battling AMD and Nvidia that have been giving Intel a total can of whoop a$$ for the last five years. The whole business environment has changed and the x86 is also fighting trillion dollar valuation companies ( Apple, Microsoft, Google, Qualcomm among many ) with more talent, money and better business model using superior Foundry scale and technology to make better, cheaper and more customized ARM and RISC-V products faster.
Never has a leadership nor company fallen so fast and visibly and embarrassingly as Intel. What is more strange, the leadership in total denial of the situation, I say delusional and “fanatical” in the words of the current CEO
@Op might be missing the forest through the trees... How do you go bankrupt?
First, slowly... and then suddenly all at once.