Intel Remains In Its Investment Phase

Summary:

  • Intel’s CEO departure is surprising as the company is on track with its 5 nodes in 4 years roadmap, crucial for regaining competitiveness.
  • The board’s decision to replace Pat Gelsinger seems premature, as financial improvements were expected towards the end of the turnaround period (2024-25).
  • Intel’s strategy focuses on technological advancements to improve profitability, with significant investments planned until 2025, aiming for manufacturing breakeven by 2027.
  • Reports on 18A yield issues should be dismissed; Intel’s defect density metrics indicate progress comparable to TSMC’s successful nodes.
Entrance of The Intel Museum in Silicon Valley.

JHVEPhoto/iStock Editorial via Getty Images

Investment Thesis

Intel’s (NASDAQ:INTC) board arguably had zero reasons to retire Pat Gelsinger as Intel remains on the course it must be on. Of course, its financials aren’t showing this yet, and Intel also hasn’t been successful in some of its newer


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