From Yahoo Finance: 2025-06-18 11:28:00

Intel is considering laying off 15% to 20% of its foundry workers, impacting thousands of employees. The company has faced significant losses and cash burn, with a focus on cost cuts. CEO Lip-Bu Tan is leading a turnaround effort to address market share loss to Nvidia and failed foundry business pivot.

Despite a 70% stock slump, Intel’s financial performance is not undervalued. Revenues in 2024 dropped to $54.2 billion, with an adjusted net loss of $600 million. Leverage ratios have risen with long-term debt hitting $46.2 billion. Moody’s and S&P Global have cut Intel’s credit rating due to weak financial condition.

Intel’s future hinges on CEO Tan’s turnaround success. The stock trades at a fair valuation, with a forward enterprise value-to-sales multiple of 2.53x. Layoffs aim to cut costs, but top-line growth is crucial. Competition from AMD and Nvidia remains fierce, with Intel’s foundry business potential for growth.

The foundry business could drive growth for Intel as hyperscalers seek custom chip partners. Competition with TSMC is a challenge. Intel must execute strategic actions to boost shareholder value. It remains a “show me story” with potential for value unlocking under new leadership.



Read more at Yahoo Finance: Is INTC Stock a Buy Now as Intel Prepares for Another Round of Mass Layoffs?