Thread regarding Intel Corp. layoffs

I think there is certainly the potential that LBT manages to get Intel lean, and that IFS picks up external customers sufficient to fund future nodes and thus be at least moderately successful.

But also consider what it means to Intel directly and indirectly (through IFS) if China essentially stops buying US semiconductors. A lot of growth over the past 20 years has been funded by China running large budget deficits, plus they are working very hard to build domestic semi production.

If the realignment of global trade is the pin which pops the China bubble then that creates a deflationary situation for the rest of the world as well. Semis are about as cyclical as anything, so the whole sector could be facing overcapacity, and China may just add to that overcapacity if they do what they've done to all other industries.

So LBT could clean up Intel and reduce the company to core functions, at the same time that revenues get cut in half. On top of a global slowdown, x86 is in the process of being replaced by ARM and soon by RISC-V.

This is what is referred to as a Value Trap, and has been one for many years, and despite LBTs best efforts it may well be one for some time to come.

The cheapest semi stock. The fast track to go up is to make fake news, or drop to 20 then double back.

Everything in America is da best. You hear it here first.
Made America best of the best again !

OP might be right if you can buy Intel stock at the right time. With the current price at around $20 declining down slowly to $2 in the first 4 and half years then you can make a huge 10X profits in the last second half of fifth year when it suddenly jumps back to $20 because it would have another new CEO at that time.

@e3+1 There are certainly reasons for the stock to remain highly volatile, and 18a picking up some meaningful external orders should be something that enables the gains to hold (due to reduction of IFS losses as capacity underutilization is reduced).

If the global economy further weakens then LBT has to do a lot of cuts just to hold down cost, so he is in the short term chasing the decline in revenues from slowing growth. Not an awesome way to start.

Significant cuts in headcount and products helps support the stock but any rally from that likely get reversed, because none of that improves growth in the short or medium term.

It has been a great trading stock for a long time and likely remains so until the economy is done with what could prove to be a major recession. Switching from globalization to regional alliances is a major shift and disruptive even if what came before was driving the US to an economic crises.

As far as book value, considering IFS losses the stock should be at a discount to book. Book value is not a floor, but simply a measure of value added, or destroyed in this case. Read a comment that the recent low reached the same market value as was hit in 2008, but not sure that matters that much to the stock either.

If ultimately the company has no strategy for what comes after x86, then it can be made as efficient and profitable as possible, until there are no revenues.

Bear sentiment is quite high.

Any uptick in the PC market due to a windows upgrade cycle alone can pop the stock.
Any hint of a big 18A or 14A customer.
18A will already drastically reduce the cost structure of Intel products.
Any sign of life in DCAI can also bump the stock.
Any significant cost reductions through layoffs can move the stock.

There are a lot of upside catalysts given the stocks beat down and trading near book value. Book value puts somewhat of a floor already.

OP read it on the internet so it must be true.

Way far too soon to make any prediction of the future trajectory being any different than it has been.

Very difficult for any tech company to turnaround from a path towards obsolescence, and to this point Intel leadership has proven to be more focused on resume padding than doing anything to improve the competitiveness of the company. They show up, put in a bit of time then bounce off to their next company.

If LBT can do what he appears willing to do, then that small, flat organization has a chance of starting over. Hard to attract the kind of senior talent needed to be competitive with the current state of the company.

Still not hearing about what is to be done beyond x86 and that is the existential question that LBT and the Board may not be willing to answer. If the goal is to be a profitable and efficient provider of x86, then that doesn't really change where the stock is in 5 years.

It's the best investment for your last 5 paychecks before layoffs.

Intel won't exist in 5 months, let alone 5 years. LBT is just prepping to part it out, like an old clunker in a junkyard being chopped and stripped.

Minimal downside.
Lots of potential for upside.
Buy low sell high.

The last 5 years was like shi tt. Why suddenly the next 5 years like the best investment base on what data or information? 4Y5N or 18A or new CEO or US brand company or rocket financial profit or secret technology? When can Intel get back to just 1 millions dollar profit without selling off assets and laying off its workers?

You are out of your mind!

The best semiconductor stock to fold up and wipe your a$$ clean with.

You mean short Intc is best investment?