Intel sees difficult times ahead
2022.11.21 09:24
Intel sees difficult times ahead
Budrigannews.com – Analysts note that it is still a “very long tunnel” despite the hope that Intel has begun to see some bright light.After a “rough” 2022, the business is facing “difficult” times two years later, and Intel is expected to continue losing market share in the datacenter.Additionally, Intel’s cash generation is being negatively impacted by the declining PC market.
“Instead of focusing on the possibility of a product turnaround, investors are now primarily concerned with protecting Intel’s dividend.Intel’s long-term node progression is the key to its turnaround, and the company needs to spend about $50 billion on capital expenditures against a financial model that only generates about $35 billion in cash over the next few years.
“Intel continues to face material cash flow headwinds in the coming year(s),” they stated in a client note. “In our view, the dividend is almost safe.”
Although they are below the consensus for 2023, the analysts anticipate Intel returning to growth in 2024.Server roadmap delays, declining PC TAM, and significant capex requirements are among the obstacles mentioned.
At current market costs, Intel shares are “genuinely esteemed,” the experts closed.
