Intel: A Sum-Of-Parts Valuation Analysis Shows Significant Upside

Summary

• Intel, with declining revenues, margins, and asset efficiency, faces significant challenges.
• Despite restructuring efforts, Intel's financial performance continues to decline, with FY24 revenues down 33% from FY21 and net income turning negative.
• A sum of parts of three independent units - Intel Products, Intel Foundry, and Architecture Design - points to significant shareholder value, with a potential total market cap of $393 billion.
• The path forward involves either a successful restructuring or a strategic breakup, both aiming to restore profitability and enhance agility, justifying a buy rating.

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For decades, Intel Corporation (NASDAQ:INTC) dominated the landscape. In Intel's own words, they put the silicon in Silicon Valley. They achieved this while having everything in-house, from designing, developing, manufacturing, and marketing its computing and related products and services. Has the industry

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.