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Globe and Mail
a day ago
- Business
- Globe and Mail
Intel vs. Qualcomm: Which Chipmaker is Better Poised for Mobile & 5G?
Intel Corporation INTC and Qualcomm Incorporated QCOM are two premier semiconductor firms investing heavily in connectivity and edge computing, with both focusing on AI (artificial intelligence) and advanced chip technologies. Intel, reportedly the world's largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses, such as AI and autonomous driving. The foundry operating model is a key component of the company's strategy and is designed to reshape operational dynamics and drive greater transparency, accountability and focus on costs and efficiency. Qualcomm's offering includes high-performance, low-power chip designs for mobile devices, PCs, XR (Extended Reality), automotive, wearable, robotics, connectivity and AI use cases. The company boasts a comprehensive intellectual property portfolio comprising 3G, 4G, 5G and other technologies. With the growing proliferation of AI in PCs, smartphones, automotive and IoT applications, both Intel and Qualcomm are steadily advancing their semiconductor portfolios to bolster their competitive edge. Let us analyze the competitive strengths and weaknesses of the companies to understand who is better positioned to capitalize on emerging market trends. The Case for Intel Intel has been investing in expanding its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy. Interim management is committed to keeping the core strategy unchanged despite efforts to drive operational efficiency and agility. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry. It is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Intel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. The company has witnessed healthy traction in AI PCs, which have taken the market by storm and remain firmly on track to ship more than 100 million by the end of 2025. Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future. However, Intel derives a significant part of its revenues from China. As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. The company is also lagging behind in the GPU and AI front compared to peers such as NVIDIA Corporation NVDA and AMD. Leading technology companies are reportedly piling up NVIDIA's GPUs to build clusters of computers for their AI work, leading to exponential revenue growth. The Case for Qualcomm Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. Qualcomm is witnessing healthy traction in EDGE networking, which helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are also fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification. The company is strengthening its foothold in the mobile chipsets market with innovative product launches. It had extended its Snapdragon G Series portfolio with the addition of next-generation gaming chipsets, Snapdragon G3 Gen 3, Snapdragon G2 Gen 2 and Snapdragon G1 Gen 2 chips. Samsung, one of the major smartphone manufacturers, has deployed the Snapdragon 8 Elite Mobile Platform for its premium S25, S25 Plus and S25 Ultra devices. It is also placing a strong emphasis on developing advanced chipsets for the emerging AI PC market. The company has inked agreements to acquire MovianAI to augment its efforts in fundamental AI research. Despite efforts to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Shift in the share among OEMs at the premium tier has reduced Qualcomm's near-term opportunity to sell integrated chipsets from the Snapdragon platform. The company is also facing stiff competition from Samsung's Exynos processors in the premium smartphone market, while MediaTek is gaining market share in the mid-range and budget smartphone market. Competition is also likely to come from rivals like Broadcom Inc. AVGO and NVIDIA. Qualcomm's extensive operations in China are further likely to be significantly affected by the U.S.-China trade hostilities. How Do Zacks Estimates Compare for INTC & QCOM? The Zacks Consensus Estimate for Intel's 2025 sales implies a year-over-year decline of 4.3%, while that of EPS indicates growth of 315.4%. The EPS estimates have been trending southward on average over the past 60 days. The Zacks Consensus Estimate for Qualcomm's fiscal 2025 sales suggests year-over-year growth of 11.8%, while that for EPS implies a rise of 14.6%. The EPS estimates have been trending southward over the past 60 days. Price Performance & Valuation of INTC & QCOM Over the past year, Intel has declined 32% against the industry 's growth of 23.9%. Qualcomm has lost 24.4% over the same period. Intel looks more attractive than Qualcomm from a valuation standpoint. Going by the price/sales ratio, Intel's shares currently trade at 1.97 forward sales, significantly lower than 3.93 for Qualcomm. INTC or QCOM: Which is a Better Pick? Intel carries a Zacks Rank #4 (Sell), while Qualcomm carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Both companies expect their earnings to improve in 2025. Long-term earnings growth expectations for QCOM and INTC are 10.5% and 8.2%, respectively. Qualcomm is a bit expensive in terms of valuation metrics. However, Intel expects a decline in revenues contrary to that of Qualcomm. With a VGM Score of B and a better Zacks Rank, Qualcomm seems to be a better investment option at the moment. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
6 days ago
- Business
- Yahoo
Can Intel Be Leaner & More Agile by Laying Off 529 Employees?
Intel Corporation INTC is reportedly laying off 529 employees across four locations in Oregon to minimize operating costs and reduce organizational complexity to better serve customers. These include software and hardware engineers, developers, managers, scientists and other domain specialists with backgrounds in artificial intelligence (AI) and cloud computing. A lion's share of the job cuts is taking place at Intel's Jones Farm Campus, which focuses on chip design work as well as research and development (R&D). The other facilities that are witnessing job cuts include the Aloha, Hawthorne Farm and Ronler Acres campuses, which support semiconductor research and boasts the largest number of Intel's facilities and workforce, with about 22,000 employees. By trimming its huge employee base, the company aims to eliminate unnecessary bureaucracy levels and become leaner and more agile, regaining its competitive edge. This follows a similar exercise a few days back, when the company decided to wind up its automotive architecture business as part of a broader restructuring process to trim operating costs and boost liquidity. Intel expects to free up significant resources by winding down this peripheral unit, thereby making more money available for R&D funding in the core PC and data center has been investing in expanding its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy. Interim management is committed to keeping the core strategy unchanged despite efforts to drive operational efficiency and agility. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry. It is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Microsoft Corporation MSFT has laid off 6,000-7,000 employees as part of a broader restructuring strategy focused on boosting AI innovation and reducing organizational layers. The job cuts are purportedly aimed at reducing redundancy, particularly in middle management and support functions. Microsoft is reallocating the freed-up resources toward high-growth AI areas like Azure AI, Copilot and custom silicon. In addition to some non-core roles within the Azure cloud, Microsoft laid off employees from its legacy hardware operations and gaming Platforms, Inc. META has conducted multiple smaller rounds of layoffs this year, affecting around 3,600 employees across departments. A majority of the job cuts occurred in Meta's metaverse division, Reality Labs, as the company trimmed roles in hardware, AR/VR and software development that were deemed non-core. In addition, Meta eliminated various non-essential jobs while prioritizing AI-powered discovery businesses. Intel shares have declined 30% over the past year against the industry's growth of 23.5%. Image Source: Zacks Investment Research Going by the price/sales ratio, the company's shares currently trade at 1.97 forward sales, lower than 14.95 for the industry. Image Source: Zacks Investment Research Earnings estimates for 2025 have decreased 6.7% to 28 cents per share over the past 60 days, while the same for 2026 have declined 6.3% to 74 cents. Image Source: Zacks Investment Research Intel stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
30-06-2025
- Business
- Yahoo
Can Layoffs Plug High Operating Expenses, Buoy Intel's Sinking Ship?
Intel Corporation INTC is reportedly winding up its automotive architecture business and laying off a significant number of employees as part of its broader restructuring process to trim operating costs and boost liquidity. The layoffs are expected to affect 15-20% of Intel's global workforce, with the company aiming to focus more on its core operations. The company expects to free up significant resources by winding down this peripheral unit, thereby making more money available for R&D funding in the core PC and data center segments. About 107 employees at the headquarters in Santa Clara, CA, are set to be laid off starting July 15. These include critical chip design engineers, logic developers, cloud software architects, project managers, as well as senior positions like a Vice President of IT and multiple technology strategy leads. The retrenched employees are tied to Intel's core CPU and GPU design teams, which power the automotive business. Management observed that the move will streamline operations and eliminate unnecessary management layers. However, the removal of this key business unit, which was once considered an integral part of the company, raised several has been investing in expanding its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy. Interim management is committed to keeping the core strategy unchanged despite efforts to drive operational efficiency and agility. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry and is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Microsoft Corporation MSFT has laid off 6,000-7,000 employees as part of a broader restructuring strategy focused on boosting AI innovation and reducing organizational layers. The job cuts are purportedly aimed at reducing redundancy, particularly in middle management and support functions. Microsoft is reallocating the freed-up resources toward high-growth AI areas like Azure AI, Copilot and custom silicon. In addition to some non-core roles within the Azure cloud, Microsoft laid off employees from its legacy hardware operations and gaming Platforms, Inc. META has conducted multiple smaller rounds of layoffs this year, affecting around 3,600 employees across departments. A majority of the job cuts occurred in Meta's metaverse division, Reality Labs, as the company trimmed roles in hardware, AR/VR and software development that were deemed non-core in nature. In addition, Meta eliminated various non-essential jobs while prioritizing AI-powered discovery businesses. Intel shares have declined 26.4% over the past year against the industry's growth of 22.9%. Image Source: Zacks Investment Research Going by the price/sales ratio, the company's shares currently trade at 1.91 forward sales, lower than 14.78 for the industry. Image Source: Zacks Investment Research Earnings estimates for 2025 have decreased 6.7% to 28 cents per share over the past 60 days, while the same for 2026 have declined 6.3% to 74 cents. Image Source: Zacks Investment Research Intel stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
15-04-2025
- Business
- Globe and Mail
Intel Stock (NASDAQ:INTC) Slides as Griffin Cove Shows up, Production Methods Revealed
With all the recent drama around sold-off business stakes, we must keep in mind that products are chip stock Intel's (INTC) true bread and butter. And Intel's chip business is carrying on in earnest, with the new line, Griffin Cove, currently in development. We even have some more news about how Griffin Cove will be produced. But this combination of news items did little for investors, who sent shares down over 2% in Tuesday afternoon's trading. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Griffin Cove, considered the 'great-grandchild of Lion Cove,' is currently under way in Intel's chip development centers, reports note. There is quite a bit riding on this processor line, as Intel has been underperforming for some time now, and Intel is having a tough time keeping up with its competitors. But Griffin Cove will have a little something different going for it, reports note, that may give it some edge. Griffin Cove, reports note, will have an 'agnostic' approach with production nodes, which will allow it to be a more adaptable processor. Indeed, earlier rumors noted that Griffin Cove will be part of an all 'P-Core' strategy, which will be first expressed through Razer Lake processors. But with the agnostic approach, Intel designers will have more ability to choose which nodes they go with for production. That is a major step up from IDM 2.0 under Pat Gelsinger, where in-house nodes were commonly adopted, with less than stellar results. Is Mobileye Next on the Block? Selling off part of Altera came as a bit of a surprise to most viewers, though only a bit. Intel needed cash, and new CEO Lip-Bu Tan was making it clear that selling off non-core businesses was the way to get there. And that has many wondering if Mobileye (MBLY) might be next up for sale. Mobileye, the self-driving car hardware operation, is perhaps one of Intel's remaining major non-core operations. While keeping a hand in the self-driving car market might be a good play long term, it likely will distract from Intel's key focus of products and foundry. Though a sale will likely not be immediate, the idea that Intel might sell off pieces of it over several months, or years, is not out of line. It would provide cash and give Intel more room to focus elsewhere. Is Intel a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 27 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 44.43% loss in its share price over the past year, the average INTC price target of $23.08 per share implies 15.86% upside potential. See more INTC analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
04-04-2025
- Business
- Yahoo
Intel and TSMC agree to form chipmaking joint venture: Report
When you buy through links on our articles, Future and its syndication partners may earn a commission. Did the semiconductor manufacturing world just shrink a nanometer or two? Intel and TSMC have reportedly reached a preliminary agreement to create a joint venture to operate Intel's fabs in the U.S. The news comes from Reuters, which cites a report from The Information based on two sources familiar with the matter. Intel has not yet commented on the matter; Tom's Hardware has reached out to the companies for more information. Under the terms of the agreement, TSMC is said to own 20% of the joint venture. It is unclear which companies will own the remaining 80%, but earlier this year TSMc reportedly approached multiple leading fabless chip designers headquartered in the U.S. — including AMD, Broadcom, Nvidia, and Qualcomm — about investing in the joint venture, which would own multiple fabs in America. Both Nvidia and a TSMC board member later denied the discussions. This arrangement was reportedly influenced by the U.S. government, specifically the White House and Department of Commerce, as part of efforts to address ongoing operational difficulties at Intel. U.S. authorities view the partnership as a means to stabilize Intel: The IDM 2.0 strategy has faced multiple challenges as the company has so far become a leader neither in products nor in semiconductor production technologies. At the same time, the current U.S. government will not support sales of Intel's fabs to a foreign investor, especially TSMC. At this point it is unclear what exactly TSMC's involvement would be with Intel's American fabs — which cost tens of billions of dollars — many of which can only be used to make processors for Intel (including fabs capable of producing on Intel 3 and Intel 4 process technologies) and only one or two of which can make processors on Intel's 18A fabrication technology. It is also unclear how TSMC's plans to own 20% of Intel Foundry aligns with its own plans to invest $165 million in its Arizona Fab 21 site to make chips for its partners, including Apple. The financial markets responded quickly to this news. Intel's stock price increased nearly 7% after the report surfaced, which helped the company to recover after a drop of market capitalization caused by the new import tariffs that will be implemented by the U.S. By contrast, shares of TSMC traded in the U.S. dropped by about 6%, highlighting differing investor reactions to the deal. As both Intel and TSMC are in their quiet periods, they cannot make any comments regarding future plans or even factors that can impact them materially, but we have reached out for comment.
