Thread regarding Intel Corp. layoffs

CEO is bring kn--e, electric saw, hammer, what else to threat employees so people can buy and bring up stock price for their profits (?)

whatever, china news is bad for intel

I asked AI to summarize the article as if it were Phil Hartman playing Frankensteins creation.

Intel Good, Fire Bad

I asked AI to summarize the article, for those of us who don't like to read.

It replied: Intel is Getting Awesomer

Going to feed that into another AI, to see if it can be made even more concise.

AI summary of article:
🔪 Key Takeaways:
CEO Li-Bu Tan’s aggressive cost-cutting: Intel’s new CEO is making bold moves to streamline the company. A major step is selling a 51% stake in Altera (a struggling subsidiary) to Silver Lake for $4.5 billion, easing financial pressure and reducing workforce.

Altera underperformance: Contributed only 3% of Intel's 2024 revenue and posted a $615M operating loss, making the sale a financially smart decision.

Stock outlook:

Intel (INTC) is undervalued, trading near $20/share—down 21% in the past month due to tariff concerns.

The author expects a rebound to the low $30s post-earnings, viewing it as a short-term turnaround/value play, not a long-term growth stock.

Upcoming earnings (April 24): Expectations are $12.31B in revenue, and the author believes Intel will beat this, especially with recent cost-cutting and improving market conditions.

Foundry struggles & future strategy:

Intel’s foundry business has posted heavy losses but is seen as a long-term strategic asset, especially with U.S. manufacturing policies favoring domestic production.

Speculation that the foundry could become a wholly-owned subsidiary.

Macroeconomic and industry tailwinds:

Semiconductor tariffs might be lifted, benefiting Intel.

Anticipated increased PC demand later in the year due to Windows 10 support ending in October.

💡 Investment Thesis:
Buy rating maintained: Despite recent drops, the author sees Intel as a strong value opportunity, citing Tan's cost-cutting strategy, undervaluation compared to peers, and potential for near-term gains.

Entry point: Anything under $20/share is seen as a good buying opportunity.

Text of article:
"Tan Brings The Kn--e, Intel Stock Will Bring The Gains: Reiterating Buy
Apr. 15, 2025 10:30 AM ETIntel Corporation (INTC) Stock, INTC:CA StockAMD, TSM, AMD:CA, TSMWF, INTC, INTC:CA9 Comments

The Techie

1. 39K Followers

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(8min)
Summary
Intel Corporation's new CEO is not holding back on cost cuts, announcing the sale of a 51% stake in Altera to Silver Lake on Monday.
My call to buy Intel was based on the cost-cutting efforts paying off big time, and INTC stock being extremely undervalued.
I'm more sure of this after the news on Altera and after the stock price got super discounted on tariff panic.
Intel is undervalued with a market cap under $89 billion; I expect a recovery to the low $30s post-earnings, making it a strong value pick.
I hereon share my sentiment on Intel and why I think the stock has upside ahead.
butcher and kn--e

TommL/E+ via Getty Images

Investment Thesis
Last time I covered Intel Corporation (NASDAQ:INTC), my rating was a buy based on their new CEO Li-Bu Tan being a lot tougher on trimming the fat. I previously stated that Tan would make significant changes at Intel, and it seems that's precisely what he has done. On Monday, Intel announced it would be selling half its stake in Altera to Silver Lake, a move that frees up quite a bit of capital for Intel and also offloads a significant weight on their shoulders in terms of workforce.

I once said that Intel wasn’t a stock for the long game, and I still remain true to that. The stock is down 21% this past month among all the news about tariffs, and jumping in at current levels around $20 per share or below could prove the short-term turnaround stock investors are hoping for.

I believe that Tan isn't finished yet in terms of efficiency changes, with further job cuts still to come. Intel is expected to report earnings very soon, in just over a week (April 24th), with the changes Tan has already made, I expect Intel to beat earnings estimates of $12.31 billion in next quarter earnings, which is already on the lower end of previous expectations. I’m still buy-rated on Intel, and current selloffs due to newly announced tariffs only open up more entry points for investors looking for a near-term gain.

Intel Trimming the Fat
Intel stock is currently trading around $20.30, up 3.4% since Monday on the news of the Altera sale. For those investors that don't know, Altera was a daughter organization of Intel focused on producing programmable chips. Intel is selling a majority stake in the company, so 51% will go to Silver Lake for a price tag of $4.5 billion. This values Altera at $8.75 billion.

If you ask me, this is a huge weight off Intel's shoulders and a wise move by Tan. Since Intel acquired Altera in 2015, it has significantly underperformed, only contributing to 3% of Intel’s revenue in 2024 and posting an operating loss of $615 million. On top of this, Altera has roughly 3,000 employees, so Intel offloading over half of those paychecks trims the fat further.

Tan has always remained focused on shifting Intel back to what it’s good. Competitors like Advanced Micro Devices (AMD) are tipped to be making a deal with TSMC (TSM) which will allow them to manufacture chips at their foundry in Arizona, giving them some reprise from any upcoming tariffs. I expect the cash from Intel's latest deal with Silver Lake to give them so breathing room, especially to help reverse their steep operating loss of over $13 billion reported in 2024. I’m expecting Tan to experiment with more cost-cutting measures, and think this pocketed $4.5 billion could better position him to do just that. Year-to-date intel is up 1.24%, which is a much more attractive number than the S&P 500's (SP500) 7.74% decline over the same period.

Chart
YCharts

Intel is expected to report earnings on the 24th of this month. Wall Street puts guidance at $12.31 billion, which is in line with Intel's guidance back in January of $11.7-12.7 billion.

So, can investors expect Tan's cost-cutting efficiency to show up in this upcoming report earnings? I believe they can, and here’s why. Within the current 90-day tariff pause, I expect the trading war to end, and Intel will be totally tariff-free. To back this up, news came over the weekend that semiconductors would be free from reciprocal tariffs. This foreshadows the long-term future for chip tariffs, and their effects should be negligible on Intel. Along with this, Microsoft Windows 10 support is expected to end in October, and pre-orders for PCs should show up in the next report earning guidance; this makes me believe that Intel should guide much higher for Q3, reflecting increased demand for their computer client business.

A More Precise Foundary Business
Intel's foundry business has for quite some time underperformed; the business reported operating losses of $2.3 billion and $5.8 billion in 4Q24 and 3Q24, respectively, as you can see in the chart below. Investors can expect Tan to get these numbers under control in 2025, as the excessive spending under former CEO Pat Gelsinger is something of the past. Although Intel buys its semiconductors from TSMC, they are still one of the only U.S.-based foundries businesses in the U.S., and among the only ones when it comes to advanced chips. President Trump's promise to bring manufacturing back to the U.S. should favor Intel. In fact, we may even see Intel’s foundry business as its own wholly owned subsidiary sometime soon, as suggested by the VP of investor relations John Pitzer.

Chart
Intel

Valuation
Intel stock, for me, is grossly undervalued. The stock is down 44% over the last year, making it very attractive to investors. If we look across the industry, Intel's forward EV-to-sales ratio is far lower than industry competitors like AMD, Qualcomm (QCOM), and TSMC. The same trend follows in the forward price-to-sales ratio.

The graph I made below to compare ratios highlights Intel’s extremely low valuation. The market cap of Intel is just under $89 billion; they’re sitting just above their 52-week low of $17.66. The stock right now is undervalued, but investors shouldn’t view Intel as a growth stock but rather a value pick. I expect Intel to recover to stock prices of the low $30s after earnings at the end of the month.

Chart
TheTechie

What's Next?
Li-Bu Tan is on an efficacy run, and he doesn’t seem afraid of committing to big changes at Intel after dumping half of Altera. He definitely wants to line up with a more streamlined core business and give Intel a direct track to follow in 2025. I’m watching to see what happens with Intel’s foundry business when it comes to the joint venture with TSMC which was discussed earlier this month but got overshadowed by all the tariff panic. I also think we’ll see Tan announce further job cuts in 2025, something that might come up, in my opinion, on the company’s earnings call later this month.

I expect much healthier guidance for 2Q25, as they now have a decent amount of capital freed up to experiment with more cost-saving tactics and head into what should be a growth period for PCs. I remain buy-rated on Intel and look for a sub $20 per share entry position into the stock. I last wrote on Intel when it was trading at $22.38, and now 9% lower, I think the stock is attractively trading at a discount."

intc reduced to clickbait fodder

Bet you miss the witches finger now!

behind paywall. Just post the article, please.

Nothing new, just more sensationalism reporting.