Intel: Spending Itself Into A Hole

Summary:

  • Intel Corporation reported Q1 2023 results that were better than feared, but the company burned a ton of cash during the March quarter.
  • The chip giant saw net debt soar during the quarter due the loss, large capex spending and the payment of the last large dividend.
  • Intel Corporation stock is expensive at $30 with debt soaring, and with the best expectations for an EPS to top $2 not until 2025 at the earliest.

Entrance of The Intel Museum in Silicon Valley.

JHVEPhoto/iStock Editorial via Getty Images

Intel Corporation (NASDAQ:INTC) got a quick pop on better than feared Q1 2023 results, but the numbers by no means were good. The chip giant saw its only growing business unit see

Finviz Chart

Source: Finviz

Business unit table

Source: Intel Q1’23 earnings release

Data Center slide

Source: Intel Q1’23 presentation

Chart
Data by YCharts


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