Intel: Spending Itself Into A Hole
- 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.
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 a related stock collapse during the day after reporting their earnings. My investment thesis remains Bearish on Intel as the business starts losing money while investing aggressively into a very uncertain future, adding a large amount of risk to the story.
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