INTEL ($INTC) – BOUNCING BACK OR STUCK IN TRANSITION?
INTEL (
INTC) – BOUNCING BACK OR STUCK IN TRANSITION?
(1/9)
Q4 2024 revenue beat forecasts at 14.3B (vs. 13.8B est.), up 7% from Q3 but still -7% YoY—highlighting Intel’s ups and downs. Looking ahead? Q1 2025 guidance points to $11.7-12.7B in revenue and break-even EPS, hinting continued headwinds. Let’s dive in! 🔎
(2/9) – EARNINGS SNAPSHOT
• Q4 non-GAAP EPS: $0.13 (beat by $0.01), down sharply from $0.54 a year ago
• GAAP earnings hurt by 15.9B in impairment + 2.8B restructuring charges
• Gross margin set to drop from 42.1% to 36% next quarter—Ouch!
(3/9) – SIGNIFICANT FINANCIAL EVENTS
• Exploring AI chip partnership w/ TSMC: Could bolster Intel’s AI presence
• Targeting 110B in cost cuts by 2025, citing big strides in Q3 2024
• Foundry services sees 4.5B revenue in Q4, improved operating loss due to EUV wafer mix—positive sign ⚙️
(4/9) – CONTEXT & CHALLENGES
• 2024 free cash flow: - 15.1B (vs. +21.4B in 2020)—hurts liquidity 💸
• Declining YoY revenue + margin pressure reflect stiff competition & big CapEx
• Intel pivoting to AI & foundry services, but near-term growth remains sluggish
(5/9) – SECTOR COMPARISON
• Forward P/E ~16, trailing P/E ~72.50 = low profitability vs. AMD/NVIDIA’s sky-high multiples
• P/B ~1.06, P/S ~1.5-2 → Intel looks “cheap” compared to peers (e.g., NVIDIA P/S ~20+!)
• Stock’s -51.67% over the last year, underperforming the semiconductor sector (+96.5%) 😬
(6/9) – UNDERVALUATION OR VALUE TRAP?
• Analysts’ intrinsic value: ~$19.37-$31.27 vs. current ~$20.97 → near fair value or slightly undervalued 🤔
• But big risks: negative cash flow, competitive drubbing from AMD/NVIDIA, repeated delays…
• The market’s discount might be warranted given Intel’s execution hurdles
(7/9) – KEY RISKS
• Competitive Pressures: AMD & NVIDIA dominating AI/data center 💻
• Execution Delays: Roadmap slips for Panther Lake (2H 2025) & Clearwater Forest (2026)
• Financial Strain: High CapEx, negative FCF, suspended dividend in 2024 🚧
• Macro & Geopolitics: Trade tensions (esp. in China) + economic headwinds
(8/9) – SWOT HIGHLIGHTS
Strengths:
Established brand, PC/server CPU leader
Foundry expansion, AI PC push
Cost cuts boosting operational efficiency
Weaknesses:
Market share losses, negative FCF
Delays in product launches, high CapEx
Complex design + manufacturing model
Opportunities:
AI & foundry growth via TSMC tie-ups
Government support (CHIPS Act)
Undervaluation if turnaround succeeds
Threats:
Fierce competition (
AMD, 
NVDA)
Regulatory & trade risks (China)
Rapid AI market evolution leaving Intel behind
(9/9) Is Intel the next big turnaround story or a sinking ship?
1️⃣ Massive comeback—AI + foundry = unstoppable!
2️⃣ Meh—They’ll recover somewhat, but not lead the pack
3️⃣ Doom—Delays, negative FCF, stiff competition… pass
Vote below! 🗳️👇
INTC) – BOUNCING BACK OR STUCK IN TRANSITION?(1/9)
Q4 2024 revenue beat forecasts at 14.3B (vs. 13.8B est.), up 7% from Q3 but still -7% YoY—highlighting Intel’s ups and downs. Looking ahead? Q1 2025 guidance points to $11.7-12.7B in revenue and break-even EPS, hinting continued headwinds. Let’s dive in! 🔎
(2/9) – EARNINGS SNAPSHOT
• Q4 non-GAAP EPS: $0.13 (beat by $0.01), down sharply from $0.54 a year ago
• GAAP earnings hurt by 15.9B in impairment + 2.8B restructuring charges
• Gross margin set to drop from 42.1% to 36% next quarter—Ouch!
(3/9) – SIGNIFICANT FINANCIAL EVENTS
• Exploring AI chip partnership w/ TSMC: Could bolster Intel’s AI presence
• Targeting 110B in cost cuts by 2025, citing big strides in Q3 2024
• Foundry services sees 4.5B revenue in Q4, improved operating loss due to EUV wafer mix—positive sign ⚙️
(4/9) – CONTEXT & CHALLENGES
• 2024 free cash flow: - 15.1B (vs. +21.4B in 2020)—hurts liquidity 💸
• Declining YoY revenue + margin pressure reflect stiff competition & big CapEx
• Intel pivoting to AI & foundry services, but near-term growth remains sluggish
(5/9) – SECTOR COMPARISON
• Forward P/E ~16, trailing P/E ~72.50 = low profitability vs. AMD/NVIDIA’s sky-high multiples
• P/B ~1.06, P/S ~1.5-2 → Intel looks “cheap” compared to peers (e.g., NVIDIA P/S ~20+!)
• Stock’s -51.67% over the last year, underperforming the semiconductor sector (+96.5%) 😬
(6/9) – UNDERVALUATION OR VALUE TRAP?
• Analysts’ intrinsic value: ~$19.37-$31.27 vs. current ~$20.97 → near fair value or slightly undervalued 🤔
• But big risks: negative cash flow, competitive drubbing from AMD/NVIDIA, repeated delays…
• The market’s discount might be warranted given Intel’s execution hurdles
(7/9) – KEY RISKS
• Competitive Pressures: AMD & NVIDIA dominating AI/data center 💻
• Execution Delays: Roadmap slips for Panther Lake (2H 2025) & Clearwater Forest (2026)
• Financial Strain: High CapEx, negative FCF, suspended dividend in 2024 🚧
• Macro & Geopolitics: Trade tensions (esp. in China) + economic headwinds
(8/9) – SWOT HIGHLIGHTS
Strengths:
Established brand, PC/server CPU leader
Foundry expansion, AI PC push
Cost cuts boosting operational efficiency
Weaknesses:
Market share losses, negative FCF
Delays in product launches, high CapEx
Complex design + manufacturing model
Opportunities:
AI & foundry growth via TSMC tie-ups
Government support (CHIPS Act)
Undervaluation if turnaround succeeds
Threats:
Fierce competition (
AMD, NVDA)Regulatory & trade risks (China)
Rapid AI market evolution leaving Intel behind
(9/9) Is Intel the next big turnaround story or a sinking ship?
1️⃣ Massive comeback—AI + foundry = unstoppable!
2️⃣ Meh—They’ll recover somewhat, but not lead the pack
3️⃣ Doom—Delays, negative FCF, stiff competition… pass
Vote below! 🗳️👇
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
⚡️ Request a trial or subscribe to our premium🛠️tools at ➡️DCAlpha.net
All scripts & content provided by DCAChampion are for informational & educational purposes only.
All scripts & content provided by DCAChampion are for informational & educational purposes only.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.