Kim Bolton Intel INTC-Q SELL ON STRENGTH May 21, 2025

With so much other opportunity and greater certainty in the tech space, this name requires you to take a big leap. Just hasn't executed on delivery or timing. Technology being bought up piecemeal. C-suite revolving door.

Avoid. Firmly in the land of long-term turnaround, which is risky. Sold assets. Foundry business relies on government support. Design business doesn't quite fit future directions of data centres and personal computing. Look at TSM.

At this point, hang on. Management turnover, concerns they're lagging in technology, not positioned to benefit from huge growth in AI. Earnings expected to grow nicely over the next few years. Valuation not demanding at 10x EBITDA for 2025.

They keep missing the mark, keep lagging in this space. Are unlikely to recover. The C-suite has been a revolving door.

Struggled for a long time. Could be putting in a bottom. The play to be in if we repatriate chips to NA. Decent dividend. You don't look for value in the chip sector. There are better value names, and better growth names, so why own this one.

The foundry was ill-advised and the old CEO was overspending. The new CEO is better, and better understands foundries. That said, it's still early to invest in this.

This doesn't help their core problem. Intel is not in a good position.

Intel has fallen so far behind TSM that it's hard to attract and maintain to talent, creating a negative cycle and continuous decline. He doesn't mind Washington have some stake in Intel, but Intel has so many issues. TSM and NVDA remain the top companies in chips.

He approves of Washington taking a stake in Intel. This isn't about socialism or Trump picking winners of losers, it's about the dire state of Intel and a long line of bad CEOs. Problem is, Intel is too big to go under. And the new CEO is a turnaround artist, who previously saved Cadence.