Is Intel's Turnaround Story Over? (Rating Downgrade)

Summary

Intel targets over $10 billion in savings by 2025, reducing OpEx to $17.5 billion — a 20% cut.
Plans to decrease workforce by over 15% by 2025, aiming to streamline operations and boost profitability.
Intel’s Panther Lake and Lunar Lake CPUs target the AI PC market, which is expected to exceed 50% by 2026.
Despite revenue growth, Intel reported $2.8 billion in operating losses in Q2 due to higher manufacturing costs.
Intel aims to regain process leadership with Intel 18A by 2025, but execution risks lead to a hold rating.

tupungato/iStock Editorial via Getty Images

Investment Thesis

Last month, we evaluated whether Intel Corporation (NASDAQ:INTC) has bottomed out following the strong pullback of the stock. Despite entering the oversold territory which implies an upside, due to Intel's ongoing execution challenges and

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(Rating Downgrade)","html":"<html><head></head><body><h2>Summary</h2>\n<ul>\n <li>Intel targets over $10 billion in savings by 2025, reducing OpEx to $17.5 billion — a 20% cut.</li>\n <li>Plans to decrease workforce by over 15% by 2025, aiming to streamline operations and boost profitability.</li>\n <li>Intel’s Panther Lake and Lunar Lake CPUs target the AI PC market, which is expected to exceed 50% by 2026.</li>\n <li>Despite revenue growth, Intel reported $2.8 billion in operating losses in Q2 due to higher manufacturing costs.</li>\n <li>Intel aims to regain process leadership with Intel 18A by 2025, but execution risks lead to a hold rating.</li>\n</ul> \n<img src=\"https://static.tigerbbs.com/d7bbf364d73c0ca31caa78955909aa76\"> \n<p class=\"item-caption\"> </p> \n<p class=\"item-credits\">tupungato/iStock Editorial via Getty Images</p>\n<h2>Investment Thesis</h2> \n<p>Last month, we evaluated whether Intel Corporation (<span class=\"ticker-hover-wrapper\">NASDAQ:<a href=\"https://seekingalpha.com/symbol/INTC\">INTC</a></span>) has <a href=\"https://seekingalpha.com/article/4712519-intel-stock-might-have-bottomed\" target=\"_blank\">bottomed out</a> following the strong pullback of the stock. Despite entering the oversold <strong>territory</strong> which implies an upside, due to Intel's ongoing <strong>execution</strong> challenges and</p></body></html>","htmlText":"<html><head></head><body><h2>Summary</h2>\n<ul>\n <li>Intel targets over $10 billion in savings by 2025, reducing OpEx to $17.5 billion — a 20% cut.</li>\n <li>Plans to decrease workforce by over 15% by 2025, aiming to streamline operations and boost profitability.</li>\n <li>Intel’s Panther Lake and Lunar Lake CPUs target the AI PC market, which is expected to exceed 50% by 2026.</li>\n <li>Despite revenue growth, Intel reported $2.8 billion in operating losses in Q2 due to higher manufacturing costs.</li>\n <li>Intel aims to regain process leadership with Intel 18A by 2025, but execution risks lead to a hold rating.</li>\n</ul> \n<img src=\"https://static.tigerbbs.com/d7bbf364d73c0ca31caa78955909aa76\"> \n<p class=\"item-caption\"> </p> \n<p class=\"item-credits\">tupungato/iStock Editorial via Getty Images</p>\n<h2>Investment Thesis</h2> \n<p>Last month, we evaluated whether Intel Corporation (<span class=\"ticker-hover-wrapper\">NASDAQ:<a href=\"https://seekingalpha.com/symbol/INTC\">INTC</a></span>) has <a href=\"https://seekingalpha.com/article/4712519-intel-stock-might-have-bottomed\" target=\"_blank\">bottomed out</a> following the strong pullback of the stock. Despite entering the oversold <strong>territory</strong> which implies an upside, due to Intel's ongoing <strong>execution</strong> challenges and</p></body></html>","text":"Summary Intel targets over $10 billion in savings by 2025, reducing OpEx to $17.5 billion — a 20% cut. Plans to decrease workforce by over 15% by 2025, aiming to streamline operations and boost profitability. Intel’s Panther Lake and Lunar Lake CPUs target the AI PC market, which is expected to exceed 50% by 2026. Despite revenue growth, Intel reported $2.8 billion in operating losses in Q2 due to higher manufacturing costs. Intel aims to regain process leadership with Intel 18A by 2025, but execution risks lead to a hold rating. tupungato/iStock Editorial via Getty Images Investment Thesis Last month, we evaluated whether Intel Corporation (NASDAQ:INTC) has bottomed out following the strong pullback of the stock. 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