Intel indicating Arrow Lake will not have a 20A version

[Xebec]

What worry me the most, is the financial burden of 18A, unless they outsource 18A to samsung, I don't think they will survive post-2025. Yes you hear me right. If they are delivering all those products that are at leading edge at late 2025-early 2026. They have the biggest possibility of running out of cash and bankupted before the dawn.

Intel had ~ $29B in cash on hand June 30, 2024 or up 20% YoY from the same time in 2023.

I think Intel can generate enough cash to get through the next 18 months regardless of what they do with these fabs - they're still selling a lot of chips. Stopping the dividend will help a lot with cash flow..

 

[kevin01]

Intel had ~ $29B in cash on hand June 30, 2024 or up 20% YoY from the same time in 2023.

I think Intel can generate enough cash to get through the next 18 months regardless of what they do with these fabs - they're still selling a lot of chips. Stopping the dividend will help a lot with cash flow..

15% employee reduction saves about $4B-$5B annually, gutting dividends saves about $2B, Intel also will reduce Capex by $10B next year, meaning they won't buy EUV machines prematurely. It is definitely preparing for the worst now, and by taking these measures, I think they will be totally fine.

Additionally, Intel may finally see some CHIPs money later this year. Their products are also starting to become really competitive now.

Full disclousure: I may be biased, as I already bought $intc shares.

Btw, stopping dividends hurt their stock prices very badly, as many funds investing in $intc have mandates of requiring some sort of dividends from their investments, so these funds had to sell.

Why Intel chose to stop dividends altogether? My speculation is that the management had to do this while laying off large number of employees, otherwise it will look really badly from a political point of view (CHIPs act at play).