From Yahoo Finance: 2025-05-03 07:22:00

Intel (INTC) stock has disappointed investors with a 34% decline over the past year and a significant 65% loss in the last five years. Seaport Global initiated coverage on INTC with a Sell rating and a price target of $18, citing challenges in manufacturing and financing. Intel’s slow adoption of advanced technologies has hindered its competitiveness against rivals.

Intel’s recent earnings were lackluster, despite exceeding revenue and EPS guidance from strong processor sales. The company is under new leadership, focusing on cost reductions and cultural transformation. However, macroeconomic uncertainties, ongoing losses in the foundry segment, and competitive pressures pose challenges. The outlook remains weak, with ongoing market share losses and sluggish demand.

Intel’s focus is shifting towards improving operational efficiency and cost discipline under new leadership. Plans to cut 20% of its workforce aim to eliminate bureaucratic bloat. While these measures stabilize the business in the short term, concerns arise regarding Intel’s competitiveness in the long term. Competitors like Nvidia and TSMC are increasing investments in AI, while Intel cuts back on capex.

Intel’s strategy of selling part of its Altera business and retaining Intel Capital suggests a lack of commitment to streamlining operations. An inverse discounted cash flow model estimates Intel’s equity value at $90 billion, or about $20.70 per share, with no margin of safety at current prices. Wall Street analysts remain largely neutral on Intel’s outlook, with doubts outweighing confidence.

Intel’s recent moves focus on stability and cost discipline, following a classic turnaround playbook. While the company’s strategy appears reactive, aggressive investments without addressing operational inefficiencies could be riskier. Despite some optimistic projections, there may not be enough margin of safety to fully buy into Intel’s turnaround story at current prices.



Read more at Yahoo Finance: ‘Don’t Bet the Farm,’ Cautions Analyst as Intel’s Comeback Story Fizzles Out