Intel Q2 Preview: Why I Expect More Pain, Offsetting All Gains (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Intel is losing market share at an accelerated pace in its core markets of servers and CPUs. The company is growing at a woefully slow pace, versus competitors.
• Management is focused on cost-cutting, margin improvement, and reduction of cash burn. These are small positives, but not enough to offset its poor revenue performance.
• Valuation is elevated relative to historical norms, which is unwarranted, given deteriorating earnings fundamentals.
• INTC, versus SPX500 technical charts, look like they may face seller pressure again.
• I maintain my bearish view and Underperform/Sell rating on INTC ahead of Q2 FY25 earnings. We need to wait of meaningful revenue growth acceleration before even considering turnaround buys.

Read the full article here.