Intel: A Chip on its Shoulder?

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January. The month of resolutions, grey skies, and, apparently, slightly disappointing earnings reports from Intel (INTC +0.31%). It’s all a bit…much, isn’t it? They did okay, numbers-wise, but there was this nagging question of whether they could actually keep up with everyone wanting chips. Which, let’s be honest, is a bit like a baker worrying if they have enough flour. The stock wobbled, naturally. Down about 10% from where it was before. It’s recovered a bit since, but still. It feels… precarious.

Everyone’s talking about demand and growth potential. And the government’s throwing money at them. So, is now the time to pile in? It’s tempting. Very tempting. But then I remember my last “sure thing” investment. And the therapy bills. Sigh.

Intel’s Outlook: A Bit of a Letdown

So, the latest quarterly report (ending December 27th) was…fine. They beat expectations, which is good. Revenue was $13.7 billion (analysts predicted $13.4 billion). Earnings per share were $0.15 (they expected $0.08). Progress! Except… the guidance for the current quarter was a bit…underwhelming. $12.2 billion versus the expected $12.6 billion. It’s the little things, really. It feels like they’re trying to run a marathon with slightly too-tight shoes.

Apparently, there are supply constraints. Which, in layman’s terms, means they can’t make enough chips. Management says it’ll improve, but honestly, I’m starting to suspect they’re just saying that to calm everyone down. And then there’s the CFO mentioning rising memory prices. It’s always something, isn’t it? Always.

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Is Intel Worth the Risk? A Diary of Doubt.

Okay, let’s be brutally honest. The stock is down, but it’s not exactly a bargain. It’s trading at 90 times its estimated future profits. Ninety. That’s…ambitious. It’s like pricing a slightly used teacup as if it were the Crown Jewels. They did beat expectations last quarter, yes, but revenue actually declined by 4% year-over-year. Operating margin? A paltry 4%. And a net loss of $591 million. It’s a bit like running up a credit card bill and hoping for a windfall.

It’s a turnaround play, they say. Risky. Very risky. The stock has soared 150% in the last 12 months, which feels… unsustainable. It’s all a bit too good to be true, isn’t it? And inflated valuations rarely end well. There are far better growth stocks out there. Ones that don’t make me feel like I need a lie-down. Honestly, it feels vulnerable to a correction. A big one.

Current Investment Mood: Anxious. Units of Cryptocurrency Lost: 0 (a minor miracle). Hours Spent Watching Charts: 7. Number of Panicked Texts to Friends: 18. Will become disciplined long-term investor: Doubtful.

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2026-02-03 23:42