Took a look at Intel recently and like the way things will be looking in the next few years based of management expectations
Key Highlights from Filings:
Intel has been going through a pretty big shake up in the last year or so, this all started when Third Point (Activist Investors) put some pressure on the company
As a result of this the company has hired a new CEO, CPO, CGAO, CFO, and CCO - Basically they have turned over the top brass for the most part and started to implement a new strategy to grow the stagnated firm
IDM 2.0 is Pat's (CEO) strategy to invest in foundries to secure their supply chain and manufacturing while reducing costs. This will cost ~$50Bn in capital investments over the next few years to build out 4 foundries (2 in Arizona, 2 in Ohio, along with updating 3 foundries in New Mexico, Malaysia, and Rio Rancho)
They plan to take their Mobileye division public this year, current estimates put the valuation at around $50bn. Intel will maintain a majority ownership of the companyConclusion:
I think Intel looks great and has a good new management team attached to them. They are in just about every sector that uses semi-conductors and with the imminent IPO of Mobileye I think this will unlock a lot more value for investors
We are at an exciting time in history where just about everything is being connected to the internet and Intel is in a great position to be a part of every aspect of this transition and be a leader in the space
I believe with fresh new leadership with a solid investments to secure production and control costs Intel has a bright future ahead of them
Thanks for making it this far! If you have any questions about my thought process or DCF feel free to let me know and I will try and answer.
As always I am not a professional investor, hold no position in Intel, and do these valuations for fun. They are not to be taken as investment advice.$Intel(INTC)$
Comments