Why is INTC stock priced at such a discount?

Pat isn’t the Messiah.

The recent post about Intel needing an Elon got me thinking about great turnaround CEOs.

Lisa Su (AMD), Satya(MS) and Jobs(Apple), or Andy(Intel)

Pat likes to say he learned at the Legends feet but let’s be honest he isn’t close to Andy nor the other noted turnaround artist.

Lisa took AMD in a different direction and also refocused on their strengths. The same can be said about Satya and Andy.

Jobs was visionary as is Elon in redefining the market.

What is Pat doing? We are going to keep being an IDM making x86, forget the fact it hasn’t worked well the last five years as Nvidia, Apple and others like Apple have put innovated you, and even AMD has smoked you, you have no competitive advantage. For most of your x86 run you had closed wall and technology, now both have dissolved.

The technology and scale was the other, but that is also gone. Intel cant compete in technology, scale or ecosystem. But we will keep trying to be a technology leader, forget the fact we failed the last five years.

We will be a world class manufacture of foundry, forget the fact we tried and failed miserable and also we have none of the skills nor things that are required to make it successfully.

Look at Alder Lake it happened on my watch as did 10 and 7. May I remind you intel10 and intel7 are like three years late and five years in the making and started way before he came. Pat is literally the party crashed claiming a prize at the end and had nothing to do with it.

He is now saying he has fixed the problems that festered for more than a decade on how strategy and technical decisions are made and viola he will go faster than AMD, Nvidia, Qualcomm, and Samsung and TSMC who have been executing like clock work better half of a decade as Intel folks did a face plant, got up and realized the Titanic struck the iceberg and he is saying full speed ahead. Lisa, Jensen, Steve and Satya set the company to where the market was going. With good strategy it took them a good half decade to prove it. Pat is hanging on to IDM and trying to go where the world already was. A visionary turnaround isn’t about IDM, faster cadence or x86 client and server, it is about a new and competitive business model than can compete with a fare faster and well equipped set of competitors. Pat’s sorry a$$ there is your supply is unsafe so give me money to make your chips with my team that couldn’t execute when it counted but surely can now that it’s got money and national security as the calling card, what a clown.

In 2025 Pat will be gone and the mess will be similar to the Boeing story or likely end up like GE, but like could equally end up like Motorola, Nokia and even uglier.

That is why even with the current free cash flow the stock is so discounted, pretty FUBAR waste of that cash

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Pat is looking back 30years how Intel turn around
He tries not to look back 5 years, how Intel gone wrong and crash from market leader to 2nd tiers
this is called selective memory.....LOL

Well 2022 is Pat's big year, Covid or no Covid. If hit plans do not start bearing fruit the skeptics will mount quickly.

If the stock price declines from the high 40's back into the 30's, there will be mounting calls for an "early retirement". The problem is another monkey will follow him.

@2nna+1e7NFYOm The problem all starts with the BoD!

When a company loses its way either strategic or execution the BoD is supposed to sniff it out and figure out if CEO is up to snuff.

For Intel they get an F with the last four CEOs; PSO, BK, Bob, and now Pat is a lineup of BoD absolute failure in their most important role.

If you look closely at the BoD you will see why as they aren’t a competent group with expertise in the right area, and who is the CEO to appoint new people more qualified to fire him, a FUBAR situation

I think the OP is Pat himself. After a year onboard he must have figured out the state of things and wants out. His hope is Intel's Board is reading this board, will get some light and boot him out with a package.

It is at a discount because Wall Street has figured out Pat is a pathological liar with even less shame than Murthy. The endless bloviation about “leadership”. The slide decks with projections that would make Soviet planners look cautious. Pat is utterly embarrassing every time he opens his mouth.

Since you only care about stock price, why not just come out and say you want BS or BK back? Don’t beat around the bush OP.

What if, just what if the Discrete graphics really hits and saves Intel? And then define the real product for the next decade?

Whishful thinking, I know, but given how messed up is the GPU market right now, we may have a slim chance.

Or maybe not.

BoD job is to scrutinize the strategy.

They took liked the narrative of Pat’s wild a$$ idea so much they gave me the keys to the train wreck and he is driving the remaining cars still on the rails off the track.

The fundamental job of the BoD is in these times validate the larger strategy and in this it has failed for the past decade. If you look at the makeup of the BoD and look at their core background and competence you’d not be surprised they have struck out three times with Paul, BK, and Pat. I don’t count Bob as was selected because NOBODY that was qualified would touch this tu-d. They got a religiously themed narrative not based on reality like many narratives dominating the US on so many things.

A truely sad ending to a once great America technology company, FUBAR

It is because nobody on Wall Street is fooled by Pat and his brazen lies.

@yzt: Turnaround is 3 stages: 1. plan, 2. execution, 3. results. The reason the Intel stock is in the gutter isn't the Wall Street being impatient for 3. of 2., but that they did not buy the presented 1. One would hope the (already not so) freshly minted Intel CEO can see the writing.

@yzt+1e7NFYOm Intel has no time and that is why it’s an investment for just the dividend.

Client will erodes away by ARM based products as Foundry + ARMy has volume, scale and all the things that x86 did to the world from 25 years ago, a slow erosion. Everyone saw what Apple has done and now Qualcomm and Google is coming, MS should too. Nvidia sees that too and maybe won’t get Arm but doesn’t need it.

The x86 business is like the Gas engine for cars compared to electric, it’s end is inevitable, old boring and low PE.

Server is big business and big bucks and AMD and Nvidia got unique competitive advantages and as such are values as such. The market isn’t stupid, Pats talk fools no one. The fact they are losing people says it all.

As to technology if Pat’s vision is Lockheed Martin type technology company for government defense he is in for a short tenure. Once the Samsung and TSMc fabs are up in 2024 the worlds capacity from 0.5um to 3nm will bury intel, Intel can’t compete in the general purpose manufacturing world without leadership and x86 monopoly. The company culture and cost structure simple never was developed for that they are a Boeing like culture, and the world has moved on.

Ten years ago they had a chance, now time is all gone. The Titanic hit the iceberg and like the disbelieving passengers “it’s sinking is inevitable”. Intel needs a bold new strategy and vision, what got sold to the BoD was a impossible dream.

Pat’s lies would make fa--o blush. The guy is one step away from a SEC fraud indictment.

Priced at a discount to what?

The market is saying that Intel's earnings prospects are not good.
Lack of growth deserves a low-PE. This is finance 101.

If all Intel does is defend the x86 PC/server market, then there is no growth and the PE will remain low. This is what the market is expecting.

If Intel can grow with foundry then the stock is undervalued. The market thinks the foundry business will not succeed. I agree with that assessment.

I also think there's a lot of risk with the cash-cow x86 PC/server market with AMD and ARM competitors taking share and so if the competitors gain any more traction, then the stock is overvalued.

In a recent investor call, Pat called out a 10% growth rate with 5% from x86 PC/server and 5% from foundry and "others". The analysts were very skeptical and are in a wait-and-see mode since Intel has lost all credibility on Wall Street.

OP: Do you know how long for them to turn around their companies? They did not do it overnight.

Thread regarding Intel Corp. layoffs

Why is INTC stock priced at such a discount?

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