Motley Fool Money Intel Can’t Stop Cutting
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Jul 28, 2025 Jose Najarro, an expert semiconductor and chip analyst, shares his insights on Intel's significant restructuring efforts and the company's quest for sustainable growth. He discusses the challenges Intel faces, the timeline for their foundry's profitability, and the intricate semiconductor value chain. Najarro also ranks his six favorite stocks in the sector, providing a unique perspective on the industry's future. Expect a deep dive into both the opportunities and hurdles within the semiconductor landscape, enhanced by engaging trivia!
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Intel's Demand-Driven Cutbacks
- Intel is drastically cutting spending and delaying projects to align investments with actual demand.
- CEO Pat Gelsinger is taking a cautious, demand-driven approach to growth and expansion.
Intel Writes Off Old Equipment
- Intel's $1.9 billion restructuring and $800 million impairment reflect wasted investments on obsolete equipment.
- The cuts focus on older machinery with unused life, emphasizing efficiency over sunk costs.
Intel Foundry Profit Timeline
- Intel's new chip process nodes (18A, 14A) will be key to its Foundry profitability in the late 2020s.
- Profitability may realistically arrive around 2028 to 2030, after validating new manufacturing tech.