Some of posts are very misleading

Personally I am disgusted with the management style of PG (over-promising and financially irresponsible). I absolutely hated him attending Davos multiple times even when Intel was at a smaller valuation than peers. As a tech leader, he should focus on tech not politics and be prudent with the company's money. He should use the time to examine all the operations to identify issues. Driving the stock price to this level is very irresponsible. After multiple quarters, I just do not trust what he is saying. In last earning call, I skipped his remarks and only looked at DZ's Q&A remarks.

But some posts about Intel going bankrupt are just bad. Make your point with hard numbers. Otherwise, those people are making non-sense to trick people to sell shares at very low price. Pure evil.

Comment! It's anonymous!

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Product mix will continue to be a headwind next year, contributing to modest YoY improvements to 2025's gross margin.

Code for “our products are not competitive” and we won’t have pricing power all the way into 2025. We should have Lunar Lake and Arrow Lake by that time.

Second-half trends are more challenging than we previously expected

Why are AMD and Qualcomm raising estimates for Q3/Q4? Why would 2nd half be challenging when the competition beats estimates and raises guidance?

This is all from Intel by the way:
https://www.intc.com/news-events/press-releases/detail/1704/intel-reports-second-quarter-2024-financial-results

Not saying this implies bankruptcy, but it’s pretty grim.

They are also reducing capex 20% below plan (also in the link above). How can we cut so much from plan and still be in the leading edge?

Lots of questions… no good answers.

As a tech leader, he should focus on tech not politics

Pat is focused on neither. His focus is on religion. He genuinely believes God has sent him on a mission to save the American semiconductor industry from godless Chinese communists.

I’ve bet the company on 18A - Pat

You better hope it works.

Good post OP but we are entering murky waters

Every company can go bankrupt. But for Intel, it is not now or next year.

The financial measures (cost cutting, reduced capital expenditures, scip programs, gov incentives; total around 40-50b) should deleverage the balance sheet next year.

In addition, as 10nm mix reduces in the next two years, gross margin will improve. With 18a, the product competitiveness (Clearwater Forest, Panther Lake, etc) will improve. Lastly, with Falcon Shore, Intel should be able to participate in AI training TAM better than Gaudi.

PG is the worst; I could not agree more with what you said, but especially the last paragraph. It should be noted that Intel is a huge company and will continue ot make a profit. It is just simply going to be making a few billion in a multi-trillion dollar industry. It does not mean that it is going to lose money every year.

Intel has negative cash flows and 50 billion in debt.

Intel can’t afford to keep spending the way it has, said Zinsner, the CFO. He said the company would end up buried in debt, given its disappointing revenue.

Intel had to cut 1 in 7 employees to avoid bankruptcy.

Intel’s trading below book value which implies higher bankruptcy risk.
Credit agencies have downgraded Intel’s debt.

Bankruptcy went from 0% to roughly 10-15% based on credit ratings.

You better wake up to reality.

Thread regarding Intel Corp. layoffs

Some of posts are very misleading

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