Intel (INTC) May Be The Most Accident Prone Company In The Universe

24/7 Wall St. Key Points:

• Intel (NASDAQ: INTC | INTC Price Prediction) has postponed its $2.9 billion Ohio manufacturing plant project, raising concerns about its ability to expand production and compete in the AI-driven chip market.
• Hopes for a bailout or acquisition by companies like Qualcomm (NASDAQ: QCOM) appear to be fading, as no meaningful M&A activity has materialized despite prolonged speculation.
• While NVIDIA (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) have explored using Intel’s manufacturing, any loss of their interest could further weaken Intel’s long-term prospects.
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Transcript:

[00:00:04] Doug McIntyre: So Intel at this point may be the most accident prone company in the universe. They’ve now delayed another project.

[00:00:17] Lee Jackson: Well, they had earmarked 2.9 billion for this manufacturing plan, and plan in Ohio, and apparently they just totally put the kibosh on that for now. And it’s interesting, it comes at a time When both NVIDIA and Broadcom AVGO are looking at Intel manufacturing for their chips. So, they’re kind of caught in this crossfire of, Okay, you don’t have the funds to do the expansion.

[00:00:50] Lee Jackson: You may not get your chips money from, it’ll be goodbye, Mr. Chips for them if they, cause they’re trying to pull all that money back. And I think the government’s basically saying, look, you want to build a plant and stay in America, go ahead and build it. We don’t have to fund everything. We can’t fund everything.

[00:01:07] Lee Jackson: But it’ll be interesting to see what happens to them. I mean, are they still going to get parted out? Is Qualcomm still going to buy a chunk? It will be interesting to see, but yeah, I mean, this is the gang that just can’t shoot straight.

[00:01:19] Doug McIntyre: I also think that people were looking for an Intel bailout, that some other company was going to come in, buy a piece of it, all of it.

[00:01:28] Doug McIntyre: My experience with M&A is, that there may have been some smoke, but by now there would have been fire. It’s in other words, if people were going to do. Qualcomm was going to do due diligence. Those people have looked they’ve kicked the tires. They’ve left. I don’t think that there’s any buyout m& a win for Intel it’s been sitting it’s been sitting on the market for too long.

[00:01:51] Lee Jackson: Yeah, I think you’re right and again the fact that Nvidia and, Broadcom are kicking the tires on them manufacturing chips for them. That would be huge if they walked away going, well, they build these, okay. It’s still Intel. That would be huge for them. One would think, and they just swapped in a new CEO and they’ll have to get something going their way or it’ll be stuck where it is forever. I think it’s gonna be stuck where it is forever. I think you’re right. I mean, it’s dead money until something big happens. And, you can’t believe that, like you said, there’s been enough talk and chatter about this, but nothing came to fruition.

[00:02:31] Lee Jackson: So that likely seems like. there’s nothing gonna happen except hopefully Dell (NYSE: DELL) can, Dell, I keep throwing them in there. Dell uses maybe some of their chips as well, but, maybe they can pull it together, but it’s not going to be easy.