Intel: Cheap For A Reason – Germany Plant In Jeopardy


  • With the growing inflationary pressure, elevated energy costs, and rising unemployment rates, INTC’s expansion plans in Germany may be at risk, depending on the subsidy expansion.
  • Things do not look rosy in Germany as well, with the ongoing energy crisis, massive €264B subsidy program, and high debt levels of €2.48T in 2021.
  • With China yet to approve the deal, it is uncertain whether the Tower Semi acquisition will be successful, significantly destabilized by the ongoing Chips War.
  • The PC destruction is also not expected to alleviate in the short term, prompting the management’s swift portfolio divestiture and aggressive operating optimization.
  • Things remain exceedingly volatile indeed, indicating the minimal margin of safety for those who choose to add here, despite the massive discount from peak levels in 2021.

CPU on board with security alert hologram


We have previously covered Intel Corporation (NASDAQ:INTC) here as a post-FQ3’22-earnings article in November 2022. Its market opportunities in the x86 segment were discussed extensively, with the company retaining its lion’s share at 71.5% for the quarter. However, the lowered FQ4’22 guidance

INTC 1Y EV/Revenue, P/E , and NTM Market Cap/ FCF Valuations

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Disclosure: I/we have a beneficial long position in the shares of INTC, AAPL, NVDA, AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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