Narratives are currently in beta
Risks
- Intel is facing strong competition from AMD in x86 structure
- Intel is also facing emerging competition from Qualcomm and ARM; If MSFT ecosystem adopted ARM (and I think it will eventually due to leadership in energy efficiency), INTC's 50+ years of advantage in CPU will erode significantly
- INTC is showing the limit of its chip design as problems begin to appear in its latest 14th gen chipset
Assumptions
- Intels' Foundry outsourcing strategy will not likely to work due to conflict of interest - it will likely sell the business at low price or write it down
- To achieve high yield, foundry business require large scale and deep expertise, both Intel is unmatched to TSMC
- Intel is unlike to catch up to TSMC in the future because of the difference in work culture between TW and US and the amount of effort the Taiwanese government is willing to support TSMC - TSMC (and semiconductor in general) is the only jewel of TW and its government will do whatever it can to defend and improve it
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Disclaimer
The user QuintusWay holds no position in NasdaqGS:INTC. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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WA
Consensus Narrative from 34 Analysts
EUV Adoption And AI Partnerships Will Strengthen Market Competitiveness
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JU
julio
Community Contributor
INTC VALUATION
Bull Intel is one of the largest semiconductor companies in the world and holds the lion's share of the PC and server processor markets. u Intel is making some smart moves in its turnaround plans, such as shedding some noncore businesses, spinning off shares of its attractive automotive business (Mobileye), and seeking innovative co- investment partnerships with financial firms.
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14.0% undervalued intrinsic discount19.00%
Revenue growth p.a.
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BA
Equity Analyst
Increased Competition In The Consumer And Commercial CPU Markets Will Impact Top Line Growth
Key Takeaways Poor thermal and energy efficiency will see Intel lose out to AMD in the server CPU market AMD and ARM will take market share from Intel in the consumer CPU segment Intel will see Notebook OEMs switching to AMD and ARM based chips for their efficiency gains Intel’s Arc GPUs won’t be able to catch up to Nvidia, leaving them without the scope to focus on AI Catalysts Struggling in the Data Center Market: Xeon SP CPUs Losing Ground As AMD Steps Up Intel's dominance in the data center CPU market has been a significant pillar of its success over the years, contributing around 30% to the company’s total sales. INTC Revenue & Earnings Breakdown - Simply Wall St However, recent trends suggest a concerning shift.
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1.8% overvalued intrinsic discount3.00%
Revenue growth p.a.
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YI
yiannisz
Community Contributor
Intel's Next Big Leap: AI Chips and Cost-Cutting for Long-Term Gains
Despite missing profitability targets in Q2 and facing ongoing margin pressure, Intel’s (INTC) strategic investments in AI CPUs, including the highly anticipated Panther Lake CPU built on the Intel 18A process, position the company for significant performance gains and enhanced competitiveness. Intel is at the forefront of a new computing era, riding the wave of AI-powered PCs set to revolutionize the market.
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FV
18.3% undervalued intrinsic discount13.00%
Revenue growth p.a.
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