Intel Corp (INTC)

[alan81]

They still talk of IDM 2.0 so I don't think they plan to spin off the factories. OTOH, it does sound like they expect the design teams to treat Intel factories as they would TSMC factories... or put another way they expect Intel factories to act like foundries, even for Intel products. I think this is part of the cost cutting efforts. The rumors of something like 13 steppings on Sapphire Rapids indicates the design teams are out of control, and this is one way to make them go slower and produce higher quality designs with fewer hot lots and rush jobs.
Alan

[Koog]

I agree that the divvy cut had to happen. Doesn't make me happy though. Vattila over on SI thinks Intel is accelerating their plan to separate design from manufacturing to build IFS based on the comments surrounding the dividend announcement. I think he may be correct.

I have diversified my portfolio since retirement, especially during the dark days of Krzanich. I moved 10% of my remaining INTC to NVDA this morning. I'm going to miss that dividend though.

[alan81]

Thanks for sharing this. It was inevitable. Intel remains a high risk high reward play. If Intel 18A is a solid process and they will be out of the woods.
Alan

[Koog]

Intel cuts dividend 66%.

https://finance.yahoo.com/news/intel-updates-capital-allocation-drive-123000813.html

[alan81]

I just finished reading the book "flying blind, the boeing 737 max..." . It talks about Boeings transition from being a great product engineering company, to a GE type company focused on financial engineering. A very good read. Hopefully Intel finds its way back to its roots of engineering great products.
Alan

[Koog]

but I need to see it before I believe it.

So do I. I was talking to my financial advisor yesterday and said it seems there are 2 possible futures for Intel:

They re-create the company and turn it around or they become another GE that can't seem to get out of its own way.

[alan81]

What we don't know is the extent they have sacrificed the short term in order to invest in the longer term projects. I think given his background Pat is likely to have gone this route, which bodes well for 2024... Intel 20A/18A has the potential to be a real game changer, but I need to see it before I believe it.
Alan

[Koog]

FYI, this is interesting:

INTC Insiders Buy In, Heavily

Steve Anderson
Feb 03, 2023 at 12:43 PM

Gelsinger and Zinsner weren’t alone in their purchases. In the last three months, Intel insiders have purchased a combined $3.4 million worth of stock. Gelsinger and Zinsner only account for $501,000 of that, so it’s clear there’s more going on here. Right now, insider sentiment at Intel is Very Positive, despite everything that’s happened so far. It looks right now like the insiders are planning for a turnaround.

https://www.tipranks.com/news/intc-insiders-buy-in-heavily

[TucsonPhil]

They filed for a new shelf offering with SEC, so expect a price drop today.

[TucsonPhil]

And CEO only takes a 25% pay cut.

[DewDiligence]

At INTC, the picture gets uglier still:

https://www.wsj.com/articles/intels-leap-of-faith-turns-into-a-lurch-11674832525

There is never a great time to spend obscene amounts of money fixing problems years in the making. For Intel Corp. though, the timing couldn’t be worse.

…Revenue for the year fell 20%—the worst annual decline the company has seen since the dot-com bubble burst in 2001.

…Capital expenditures totaled $24.8 billion, up 33% from the previous year. That is an eye-popping sum from a company that has typically spent in the midteens billions of dollars, and even more so considering it represents 39% of Intel’s revenue for the year.

…Intel projected a 40% year-over-year revenue decline in the first quarter, which would be the worst drop since at least 1992… The company even broke with past practice by declining to give a projection for the full year…

[Koog]

Gelsinger will be on CNBC in the 11 AM hour.

Sure wish EP, WBMW and others were here to chime in.

[Agoura Guy]

HORRENDOUS EARNINGS AND GUIDANCE!!!!!!!

[Cameo Brien]

Getting lil bounce here. More to come?

[borusa]

Intel still means for me the invincible enterprise created by Moore, Noyce and Grove.

Yeah, sure thing. Put Otelini in there too. Only pay for what you need (6B$), best friends with Dell.

Some peoples are going to lose a lot of money. That's because they had too much to begin with,

[jmgreeny]

So squeeze on for dividend ?

[joseph pareti]

Surprising to see such a once formidable company suffering today

If you look back at BK's tenure it is not surprising at all. This is why I did what I did.

Having said that, Intel still means for me the invincible enterprise created by Moore, Noyce and Grove.

[MiamiGent]

Goodd day, Joe,
Then you are ahead, from where the SP stands now!
But I don't know where you might have fallen from :)
Surprising to see such a once formidable company suffering today

[joseph pareti]

cost cutting. Is this a strategy?

BTW, as an Intel-inside guy I got disillusioned by mismanagement 5 years ago, and dumped all my INTC shares at $39

[MiamiGent]

INTC doing very well this morning, following earnings.
I guess folks feel the bottom has been put in.
Right at the 50 MA now


INTEL CORP
$28.82 +2.55 (+9.69%)


https://stockcharts.com/h-sc/ui?s=INTC

[ShawnyD]

Just hold

[buyittradeit]

My Intel is holding up better then my bag of AMZN....what planet is this again?

[procqw2]

One of the issues with the client computing group is that both Intel and AMD have been primarily doing x86-64 compatible CPUs and have agreements in place for a mutual control of this market. At the same time, many, like Apple, have been doing in-house ARM type of chips that are more power efficient, more integrated, have some exciting virtualization options, and are faster for many workloads. Intel and AMD have stated how they are ready to transition to ARM but it remains to be seen how and when that will happen.

[drjohn]

Intel pays 5.64% dividend, Ex-dividend date is Nov 04. So my bets are the 52 week low may be tested after the 4th.

[DavidPro__1]

Intel (INTC) closed at $26.42 in the latest trading session, marking a +1.97% move from the prior day. The stock lagged the S&P 500's daily gain of 2.65%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 0.24%.
Prior to today's trading, shares of the world's largest chipmaker had lost 11.39% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.03% and lagged the S&P 500's loss of 8.99% in that time.

[th6565]

Bad year 2022 for chips makers and weak PC demands, Intel 3rd quarter earnings can’t t be good. By late October Intel PPS could be sliding down further from last Friday close.

[Koog]

Well, Heck Yeah! Crush ‘em, Pat!

https://www.theverge.com/2022/10/4/23385652/pat-gelsinger-intel-chips-act-ohio-manufacturing-chip-shortage?fbclid=IwAR2hpkqEAOm8liFE8llnZgo4ctgs1VW1bdTEgEaSZk_4FGF66mrjTkcCwZE

[nicehit]

Mobileye IPO... do we shareholders get shares?

[buyittradeit]

I bought a little.

[Afterhoursearnings3]

Starting to look attractive here, I think I want 20

[lvhd]

Another red day. INTC very cheap

[Porterhouse10]

Ouchie Boo boo

[buyittradeit]

Very possible. But you will have them hyping the chipsact. may sell puts?

[th6565]

Waiting for 3Q earnings report, if not good # the stock would break below $20 where I will get in.

[buyittradeit]

20-25 I will go in deep on this too.

[lvhd]

Red every day. Wow

[lvhd]

Agreed

[ShawnyD]

Oversold

[Porterhouse10]

Womp Womp

[webdev2016]

$49 again. Time to buy.

[Afterhoursearnings3]

Yeap, but I think we get a bit lower

[ShawnyD]

Great time to buy… isn’t the future all micro chips?

[borusa]

The Sacred Cow may get served up at McD's

[Lowjack]

Nah, they will be scrapping EVs faster than they can make them!

[Nivea67515]

I was wrong here- this was anything but a coiled spring . This is going down to Davey jones locker. Glad I sold my shares in my Charles schwab account in late March for $49.58 per share.

[Afterhoursearnings3]

Looks good

[buyittradeit]

good news

[Koog]

SANTA CLARA, Calif., Aug. 23, 2022 – Intel Corporation today announced a first-of-its-kind Semiconductor Co-Investment Program (SCIP) that introduces a new funding model to the capital-intensive semiconductor industry. As part of its program, Intel has signed a definitive agreement with the infrastructure affiliate of Brookfield Asset Management, one of the largest global alternative asset managers, which will provide Intel with a new, expanded pool of capital for manufacturing build-outs.

SCIP is a key element of Intel’s Smart Capital approach, which aims to provide innovative ways to fund growth while creating further financial flexibility to accelerate the company’s IDM 2.0 strategy. Intel’s agreement with Brookfield follows the two companies’ memorandum of understanding announced in February 2022. Under the terms of the agreement, the companies will jointly invest up to $30 billion in Intel’s previously announced manufacturing expansion at its Ocotillo campus in Chandler, Arizona, with Intel funding 51% and Brookfield funding 49% of the total project cost. Intel will retain majority ownership and operating control of the two new leading-edge chip factories in Chandler, which will support long-term demand for Intel’s products and provide capacity for Intel Foundry Services (IFS) customers. The transaction with Brookfield is expected to close by the end of 2022, subject to customary closing conditions.

More …..

https://www.intel.com/content/www/us/en/newsroom/news/financial-news-aug-2022.html#gs.9g2feq

[ShawnyD]

Is it true the world will run out of copper supply in 12 years? Takes that long to get another mine goin they say

[asp42001]

Brace For Transaction Cyberattacks From China & Others

Cyberspace software defense fUSIOn? Demand outweighs supply!!

Intel's dividend 8/4/22, could draw attention.

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DEAL!