Intel Corporation, listed on the NASDAQ as INTC, has seen a decline in its performance over the last few months, losing about 10% in the last 12 months while the S&P 500 gained 25%. This drop has been unexpected and disappointing for investors. The company reported an operating loss of $1,069 million in its last quarter, although this was an improvement from the previous year. The company’s revenue grew by 8.6% year-over-year, but it still struggled with negative free cash flow.
Intel has introduced a new reporting structure, separating its business into two segments: Intel Foundry and Intel Products. The former is not profitable yet and is generating a significant operating loss, whereas the latter is performing relatively well. The company’s core business, Intel Products, saw revenue increase by 17.5% year-over-year but is still subject to the cyclicality of the semiconductor industry.
Mobileye and Altera are two significant segments for Intel, with both facing challenges in the last quarter. Mobileye reported a 47.8% year-over-year decline in revenue, while Altera saw a 58.1% decline. The company aims to operate Altera as a standalone business and has plans for both segments to improve their performance moving forward.
Despite its current struggles, Intel has a long-term vision that remains optimistic. The company is positioning itself to capitalize on the growing semiconductor market and aims for the Intel Foundry business to contribute significantly to its profitability. Analysts expect the company to manage a turnaround and reach previous highs, with earnings per share projected to grow in the coming years.
Although Intel’s stock price reflects a lot of negativity, some analysts see potential for growth in the future. The sentiment surrounding the company is pessimistic, but this could be a contrarian indicator pointing toward higher stock prices. Overall, Intel is considered undervalued at this point, and even a modest performance improvement could make it a good investment.
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https://seekingalpha.com/article/4702105-has-intel-found-its-bottom-again