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.
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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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