The chips are down as never before for Intel INTC -3.81%decrease; red down pointing triangle. But in 2024, even a greatly diminished semiconductor manufacturer may be too big to fail.
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Intel is postponing one of its major conferences until next year. The postponement of the Intel Innovation event comes as the company is making moves to dramatically reduce costs.
Shares of chip maker Intel, described as “unownable” by one analyst, are priced for the company's lights to be shut off. That's an unrealistically dire outlook.
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Although down slightly in the pre-market, Intel (NASDAQ: INTC ) stock rose yesterday following a much-needed insider buy. The company's shares are currently trading at prices last seen in late 2012 following a disappointing earnings report.
Intel has described the path to recovery. However, long-term investors have reason to view it with skepticism.
Intel (NASDAQ: INTC ) certainly faced its fair share of headwinds in recent years. The company's share price dropped 60% year-to-date as investors are looking past Intel stock to other semiconductor names with much better long-term growth forecasts.
Moody's downgraded Intel's senior unsecured rating on Thursday to BAA1 from its earlier A3 rating, citing concerns about the chipmaker's profitability.
Intel faces significant challenges with declining sales, losses, and increasing debt, exacerbated by delays in product development and tough competition. Intel is implementing drastic cost-cutting measures, including eliminating dividends and reducing expenses, in an effort to turn around its struggling business and improve competitiveness. The jury is still out, as the focus should really be on execution, with the range of possible (shareholder) outcomes being quite wide.
Intel CEO Pat Gelsinger has been buying stock for many quarters, so his latest purchases shouldn't be seen as a valuation call.
Mizuho analyst Vijay Rakesh downgraded Intel stock to Hold from Buy, and cut the target price to $22 from $36. “We were wrong,” he writes.