Technology / Semiconductor / Internet Research

Nicolas Baratte

Nicolas Baratte has been a financial analyst since 2000, covering the Technology sector in Asia mostly, and Global Tech in a couple of jobs. Nicolas has worked on the sell-side for JPMorgan, CLSA and Macquarie. On the buy-side for a Tiger fund and Prudential. Nicolas has covered Asian semiconductors, Asian hardware and components, and the global Semi supply chain. In addition to stock coverage, he also publishes research on sectors as that often shows clearer trends and pinpoints the inflection points in a sharper way. Nicolas lives mostly in Taiwan, sometimes in France and is in New York regularly.

Intel Q324. Restructuring & Impairment Charges Tank Gross Margin

Intel Former CEO Craig Barrett Says Splitting Intel In Two Is A Bad Idea & Backs Gelsinger

Tech News This Week: TSMC, Samsung, Amazon / Nvidia, Super Micro, Smartphone ASP Increasing, AI PC

Lots More on the Ongoing Mess That Is Intel

Intel. Pressure Mounts As Four Former Board Members Speak Out

Intel Names "Long Term" Successor To Technology Development Chief. Why & Why Now?

Initial Thoughts on the Kioxia IPO - Impact on SK Hynix and Samsung Electronics

Taiwan Tech Weekly: Wave of Earnings Imminent; New TSMC Price Hike; Mediatek Winner of QCOM/ARM Spat

Equity Bottom-Up

<ul>
<li>3Q24 was hit by US$18.7bn restructuring charges. Intel says that post-restructuring, once 18A production starts late 2025, everything will be better. Streamlined portfolio, competitive process, high Fab loading, margins recovery...</li>
<li>We’ve heard that restructuring turnaround theory too many times. A lot of hope and no evidence for another 12-18 months. No AI strategy. Margins improvement depends on unproven 18A yields. </li>
<li>Consensus aligns with Management's rosy outlook. Yet, the stock trades at 22x 2025 and 13x 2026. Risks are too high, in our view.  Strangely, the stock is up 7% after-hours. </li>
</ul>


3Q24 was hit by US$18.7bn restructuring charges. Intel says that post-restructuring, once 18A production starts late 2025, everything will be better. Streamlined portfolio, competitive process, high Fab loading, margins recovery...
We’ve heard that restructuring turnaround theory too many times. A lot of hope and no evidence for another 12-18 months. No AI strategy. Margins improvement depends on unproven 18A yields. 
Consensus aligns with Management's rosy outlook. Yet, the stock trades at 22x 2025 and 13x 2026. Risks are too high, in our view.  Strangely, the stock is up 7% after-hours. 


Intel 3Q24: Big Restructuring Hit. Core Problem Remains Zero Visibility to Support Management Vision

Intel Corp

Intel 3Q24: Big Restructuring Hit. Core Problem Remains Zero Visibility to Support Management Vision