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Haven't checked Intel's stock in quite some time. I am familiar with their RISC-V moves and big future plays. Market Cap 180 billion sounds great. PE ratio of

Haven't checked Intel's stock in quite some time. I am familiar with their RISC-V moves and big future plays. Market Cap 180 billion sounds great. PE ratio of 7.3... WOW. People are heavily predicting major crash on intel. Very nice dividend as well... so they aren't attracting people? 15 billion/year into R&D is pretty comfy. Gain on Sale of Security 6,823million Good and increasing EPS, consistently beating estimates. total assets are going up very well. total debt is going up and is a bit high. Their financials look good. I dont see why their PE ratio would be sooooooo low. 0.06% % of Shares Held by All Insider Oh. Intel is probably just skittering by, and it's really the everything bubble that's the problem? Might make sense. I think the bigger reality? They label their assets as 168 billion and their market cap is 180 billion? Can we talk about bankruptcy?

mywittyname 4y ago
Intel isn't successful in the fields that "the market" thinks are the future. ARM is slowly chiseling away at their market share on the general purpose end of the spectrum. It's pretty clear that Apple intends to move completely away from Intel as some point in the near future. Nvidia has heavily outpaced them in the AI computing space. Data centers are filling up with racks of five-figure Nvidia cards. Intel was never competitive in the gaming sector, so there's no evidence to suggest they could ever catch up. Even in their home turf of legacy PC chips, there is strong competition from AMD. I can see why people aren't expecting huge growth from Intel in the future. There isn't an obvious growth market that they are primed to take.
specialp 4y ago
It is the same reason companies predicted to have large growth have higher PE multiples. A PE of 6 indicates that the market does not believe Intel will be able to keep this level of earnings in the future. Here are some of the factors: * Getting beat in manufacturing by TSMC * Competition in X86 infrastructure from AMD * Centralization of the lucrative server market into a few very large players that are fabricating their own ARM based chips (IE AWS gravitron) * X86 no longer having the same moat as ARM mobile domination has made many major libraries,languages and frameworks work just as well with ARM. * Recent track record of failing to respond to such challenges in a competitive way Of course they could turn this around and keep making insane profits, but that is what the market is thinking at the moment.
ksec 4y ago
Part of the reason was their lower than expected margin in their DC / Enterprise sector where they are facing competition from AMD EPYC. This somehow only showed in the recent quarters which is much later than most expected as EPYC has been on the market for quite some time.

mywittyname 4y ago

Intel isn't successful in the fields that "the market" thinks are the future. ARM is slowly chiseling away at their market share on the general purpose end of the spectrum. It's pretty clear that Apple intends to move completely away from Intel as some point in the near future. Nvidia has heavily outpaced them in the AI computing space. Data centers are filling up with racks of five-figure Nvidia cards. Intel was never competitive in the gaming sector, so there's no evidence to suggest they could ever catch up. Even in their home turf of legacy PC chips, there is strong competition from AMD. I can see why people aren't expecting huge growth from Intel in the future. There isn't an obvious growth market that they are primed to take.

specialp 4y ago

It is the same reason companies predicted to have large growth have higher PE multiples. A PE of 6 indicates that the market does not believe Intel will be able to keep this level of earnings in the future. Here are some of the factors: * Getting beat in manufacturing by TSMC * Competition in X86 infrastructure from AMD * Centralization of the lucrative server market into a few very large players that are fabricating their own ARM based chips (IE AWS gravitron) * X86 no longer having the same moat as ARM mobile domination has made many major libraries,languages and frameworks work just as well with ARM. * Recent track record of failing to respond to such challenges in a competitive way Of course they could turn this around and keep making insane profits, but that is what the market is thinking at the moment.

ksec 4y ago

Part of the reason was their lower than expected margin in their DC / Enterprise sector where they are facing competition from AMD EPYC. This somehow only showed in the recent quarters which is much later than most expected as EPYC has been on the market for quite some time.