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Gary Mobley Declares a 'Catch-22' in Progress With Intel Stock (NASDAQ:INTC) Turnaround
Gary Mobley Declares a 'Catch-22' in Progress With Intel Stock (NASDAQ:INTC) Turnaround

Business Insider

time5 days ago

  • Business
  • Business Insider

Gary Mobley Declares a 'Catch-22' in Progress With Intel Stock (NASDAQ:INTC) Turnaround

A Catch-22 might be one of the worst things to run into, especially where investments are involved. And that is exactly what chip stock Intel (INTC) is facing, according to Loop Capital analyst Gary Mobley, who has a five-star rating on TipRanks. The notion clearly frightened investors, who sent shares slipping down fractionally in Tuesday afternoon's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. For those not familiar, a Catch-22—derived from the Joseph Heller novel of the same name—is essentially a paradox. It is a situation that cannot be escaped from due to contradictory rules or limitations that inherently cancel each other out. The original novel declared that combat pilots could get out of flying combat missions if they were found insane. But requesting a mental evaluation was a sign of sanity, thus, anyone who actually requested an evaluation was considered sane. Intel faces something similar, Mobley noted. Mobley noted that the advanced-node manufacturing systems at Taiwan Semiconductor Manufacturing Co. (TSM) were better than Intel's. Further, Intel also faces stiff competition for the product arm. However, in order to improve Intel's products, and take on those competitors, Intel would need to turn to Taiwan Semiconductor, and thus pay its own competition. Worse, Mobley notes, Intel cannot recover its fixed costs without volume orders from the products division, which optimally, would be routed to Taiwan Semiconductor instead. Thus, Intel Foundry may end up as a 'headwind' for Intel Products. Clear Linux Departs Meanwhile, Intel—which has been rapidly pulling out of projects in a bid to save cash—pulled out of another project. The Clear Linux OS team has been shut down, and a 10-year tenure of open source development has been shuttered with it. Intel both developed and maintained the Clear Linux system, which was specifically optimized to run with Intel hardware. Clear Linux users, therefore, are advised that there will be no further security updates, and that they should move to other distributions to protect themselves. Is Intel a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 29.41% loss in its share price over the past year, the average INTC price target of $21.98 per share implies 5.38% downside risk.

Intel axes Clear Linux, the fastest distribution on the market — company ends development and support, effective immediately
Intel axes Clear Linux, the fastest distribution on the market — company ends development and support, effective immediately

Yahoo

time20-07-2025

  • Yahoo

Intel axes Clear Linux, the fastest distribution on the market — company ends development and support, effective immediately

When you buy through links on our articles, Future and its syndication partners may earn a commission. As part of its global restructuring plan, Intel has been cutting not only engineers, technicians, and managers, but also its software unit. This week, Intel officially ended its Clear Linux project, a high-performance Linux distribution designed for x86-64 systems, according to Phoronix. The company announced that it will no longer maintain or update the OS, marking the end of a decade-long effort to optimize Linux performance aggressively. "After years of innovation and community collaboration, we are ending support for Clear Linux OS," a statement by a Clear Linux official reads. "Effective immediately, Intel will no longer provide security patches, updates, or maintenance for Clear Linux OS, and the Clear Linux OS GitHub repository will be archived in read-only mode. So, if you are currently using Clear Linux OS, we strongly recommend planning your migration to another actively maintained Linux distribution as soon as possible to ensure ongoing security and stability." Clear Linux stood out for its aggressive out-of-box performance tuning and consistently strong results not just on Intel hardware, but also on AMD platforms, as noted by Phoronix. First, it was built using the latest toolchains that support all the latest CPU technologies. Secondly, it was compiled with aggressive GCC or Clang flags tailored to the latest CPUs, thereby adopting all the optimizations for such processors, making it particularly useful for performance-hungry workloads. Thirdly, Clear Linux applied profile-guided (PGO) and link-time optimizations (LTO) system-wide — including the kernel, libraries, and user utilities — enabling it to streamline execution paths based on real workloads and reduce binary size and overhead. In addition, Clear Linux featured aggressive out-of-box kernel tuning, prioritized maximum CPU frequency, and featured performance enhancements for CPU multi-threading, memory, I/O, and power consumption. Also, Clear Linux was among the first operating systems to adopt the latest technologies that Intel had to offer, such as AVX2, AVX-512, or Optane, out of the box. Last but not least, it featured tools like clr-boot-manager for fast kernel updates, which improved the user experience. The shutdown is part of Intel's global cost-reduction strategy, which has already impacted most of the teams within the company. Though the end of Clear Linux had been rumored in recent years, the company only now made the decision public. Of course, Intel will remain deeply engaged in the Linux ecosystem and will continue contributing to upstream projects and other major distributions. Other distributions, such as CachyOS, are already adopting some of the technologies and methods pioneered by Clear Linux. "Rest assured that Intel remains deeply invested in the Linux ecosystem, actively supporting and contributing to various open-source projects and Linux distributions to enable and optimize for Intel hardware," the statement reads. "A heartfelt thank you to every developer, user, and contributor who helped shape Clear Linux OS over the last 10 years. Your feedback and contributions have been invaluable." Phoronix notes that this announcement follows a week of significant changes within Intel's open-source software teams. A well-known Linux engineer exited the company, and at least one primary upstream driver lost its maintainer. Other team members working on Linux and open-source technologies were also affected by recent job cuts. Given such significant changes, it remains to be seen whether Intel will be as efficient as before in driving Linux performance improvements in the future. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.

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