back to article Intel turmoil prompts S&P Global to downgrade chipmaker's credit rating

Intel's troubles continue to compound after S&P Global on Tuesday downgraded its credit rating, citing concerns about the chipmaker's pace of recovery and management uncertainty. Intel's credit rating has dropped from "BBB+" to "BBB" after 2024 revenues and outlook failed to meet S&P's expectations. The decision comes just …

  1. Duncan Macdonald
    FAIL

    Still too high

    With the dismissal of Pat Gelsinger, Intel does not have a viable strategy to escape from its current woes. I would rate Intel as B- at best and more likely a CC or C rating.

    Intel's net loss for the last quarter was over 16 billion dollars and its balance sheet shows an excessive amount of "Goodwill" of over $24 billion.

    Years ago Intel got rid of a lot of its R&D staff to boost its profits when AMD was struggling - and in the process destroyed the future of the company.

    With the beancounters having got rid of Pat Gelsinger's because his plans to rescue Intel had a high short term cost, I would not be surprised to see Intel failing.

    Big lesson - DO NOT have beancounters running a high tech company,

    This icon seems to fit Intel =============>

  2. Doctor Syntax Silver badge

    Does this indicate signs of sentience in financial markets? S&P taking a stance on longer term consequences of manglement's decisions.

  3. Bitsminer Silver badge

    Possibly another downgrade?

    BBB+ is the one step above "junk" status.

    If Intel gets downgraded again then watch out, sparks will fly.

    1. nautica Silver badge
      Meh

      Re: Possibly another downgrade?

      Apologies for doing this; your comment is very good, and very much on point, but...

      the way I would characterize this is--

      "...WHEN Intel gets downgraded again then watch out, sparks will fly."

  4. Wang Cores

    Beancounters win again.

    As far as CEOs go, I'm somewhat sympathetic to Gelsinger. I've volunteered myself ("a quick reset" -- yeah right), only to walk in see all the lights are red, with the bouquet of overheating silicon faintly on the air somewhere.

    It seems like he got the corporate officer version of that.

    1. Ilgaz

      I was reading the 80486 Wikipedia article and he was even in that one.

  5. Ilgaz

    Windows 10 thing

    Why would anyone choose an intel to "upgrade" their PC? They would buy AMD or better, move to ARM which will be much more mature at that time.

  6. Tron Silver badge

    <ponders>Hmmm.</ponders>

    Outsourcing isn't a bad plan if your internal corporate infrastructure doesn't work very well.

    Large tech companies are well advised to persistently buy into start-ups at the earliest possible stage, even raw ideas, as a relatively tiny investment may get them out of the poop later.

    Intel have sacks of patents and legacy gear. They might consider producing a genuinely cheap works PC for the masses with none of the AI, gimmicks, lock-ins and security issues of the major players. Open it up to all comers for the software, as it once was. Basically a Raspberry Pi without the design compromises. It would cost very little and not require the latest FABs.

    There are areas to innovate, like distributed systems, but Intel hasn't innovated for some time. Maybe they should just bale out, sack everyone and become a hedge fund.

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