Eastman Kodak Company engages in the provision of hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The company operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment provides digital offset plate offerings and computer-to-plate imaging solutions; press systems and components under the PROSPER brand name, as well as print inks and primers under the KODAK OPTIMAX, KODACHROME, and KODAK EKTACOLOR brand names; and PRINERGY, a workflow production software, which is used by customers to manage digital and conventional print content from file creation to output. This segment offers its products to commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, décor, and packaging/labels. The Advanced Materials and Chemicals segment engages in industrial film and chemicals, motion picture, advanced materials and functional printing, and IP licensing and analytical activities. This segment also comprises the Kodak Research Laboratories, which conducts research, develops new product or new business opportunities, and files patent applications for its inventions and innovations, as well as manages licensing of its intellectual property to third parties. The Brand segment engages in the licensing of Kodak brand to third parties. The company is also involved in the operation of Eastman Business Park, a technology center and industrial complex. It sells its products and services through direct sales, third party resellers, dealers, channel partners, and distributors. The company was founded in 1880 and is headquartered in Rochester, New York.

Eastman Kodak Company

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Viking Therapeutics Inc (Symbol: VKTX), where a total volume of 27,860 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.4% of VKTX's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $50 strike call option expiring January 16, 2026, with 3,082 contracts trading so far today, representing approximately 308,200 underlying shares of VKTX. Below is a chart showing VKTX's trailing twelve month trading history, with the $50 strike highlighted in orange:
Eastman Kodak Co. (Symbol: KODK) options are showing a volume of 6,953 contracts thus far today. That number of contracts represents approximately 695,300 underlying shares, working out to a sizeable 59.1% of KODK's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $5 strike put option expiring December 19, 2025, with 5,300 contracts trading so far today, representing approximately 530,000 underlying shares of KODK. Below is a chart showing KODK's trailing twelve month trading history, with the $5 strike highlighted in orange:
And GEO Group Inc (Symbol: GEO) saw options trading volume of 12,454 contracts, representing approximately 1.2 million underlying shares or approximately 58.9% of GEO's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $30 strike call option expiring April 17, 2026, with 5,003 contracts trading so far today, representing approximately 500,300 underlying shares of GEO. Below is a chart showing GEO's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for VKTX options, KODK options, or GEO options, visit StockOptionsChannel.com.
Also see:
ISGR Videos
AL market cap history
EGIF market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Thursday Option Activity: VKTX, KODK, GEO

David Gardner on "Rule Breaker Investing"

The following are the top rated Information Technology stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
ON SEMICONDUCTOR CORP (ON) is a large-cap value stock in the Semiconductors industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ON Semiconductor Corporation operates under the onsemi brand. It provides intelligent power and intelligent sensing solutions. Its segments include the Power Solutions Group (PSG), the Analog & Mixed-Signal Group (AMG), and the Intelligent Sensing Group (ISG). PSG offers an array of discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. AMG designs and develops analog, mixed-signal, Power Management ICs, Sensor Interface devices, Power Conversion, Signal Chain, and Voltage Regulation devices for a broad base of end-users in the automotive, industrial, computing and mobile end-markets. ISG designs and develops CMOS image sensors, image signal processors, single photon detectors, including SiPM, SPAD arrays and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different end-markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
FAIL
SALES:
PASS
CURRENT RATIO:
PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:
PASS
LONG-TERM EPS GROWTH:
PASS
P/E RATIO:
PASS
PRICE/BOOK RATIO:
PASS
Detailed Analysis of ON SEMICONDUCTOR CORP
ON Guru Analysis
ON Fundamental Analysis
EASTMAN KODAK CO (KODK) is a small-cap value stock in the Misc. Capital Goods industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Eastman Kodak Company is a manufacturer focused on commercial print and advanced materials and chemicals. It operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment is comprised of five lines of business: the Prepress Solutions business, the PROSPER business, the Software business, the Electrophotographic Printing Solutions business and the VERSAMARK business. Print segment products include digital offset plate offerings and computer-to-plate imaging solutions, digital printing solutions using electrically charged toner-based technology, production press systems, consumables (primarily ink), inkjet components, software and services. Its Advanced Materials and Chemicals segment is comprised of four lines of business: Industrial Film and Chemicals business, Motion Picture business, Advanced Materials and Functional Printing business, and the Licensing and Analytical Services business. The Brand segment contains the brand licensing business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
PASS
SALES:
PASS
CURRENT RATIO:
PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:
FAIL
LONG-TERM EPS GROWTH:
FAIL
P/E RATIO:
PASS
PRICE/BOOK RATIO:
PASS
Detailed Analysis of EASTMAN KODAK CO
KODK Guru Analysis
KODK Fundamental Analysis
Benjamin Graham Portfolio
Top Benjamin Graham Stocks
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Information Technology Stocks Based On Benjamin Graham - 4/28/2025

Are Investors Leaving U.S. Stocks?

ChatGPT Asks & Motley Fool-Co-Founder David Gardner Answers

The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
EASTMAN KODAK CO (KODK) is a small-cap value stock in the Misc. Capital Goods industry. The rating according to our strategy based on Motley Fool changed from 65% to 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Eastman Kodak Company is a manufacturer focused on commercial print and advanced materials and chemicals. It operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment is comprised of five lines of business: the Prepress Solutions business, the PROSPER business, the Software business, the Electrophotographic Printing Solutions business and the VERSAMARK business. Print segment products include digital offset plate offerings and computer-to-plate imaging solutions, digital printing solutions using electrically charged toner-based technology, production press systems, consumables (primarily ink), inkjet components, software and services. Its Advanced Materials and Chemicals segment is comprised of four lines of business: Industrial Film and Chemicals business, Motion Picture business, Advanced Materials and Functional Printing business, and the Licensing and Analytical Services business. The Brand segment contains the brand licensing business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of EASTMAN KODAK CO
KODK Guru Analysis
KODK Fundamental Analysis
Motley Fool Portfolio
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Motley Fool Strategy Daily Upgrade Report - 11/30/2024

(RTTNews) - Eastman Kodak Co. (KODK) disclosed in a regulatory filing on Monday that it is evaluating options for its U.S. pension plan, including the potential termination, as part of efforts to release the value of its overfunded pension fund.
Kodak stated that terminating the plan could result in proceeds between $530 million and $585 million. However, the company has yet to make a final decision regarding the termination of the pension plan.
KODK closed Monday's regular trading at $6.25 up $0.98 or 18.60%. In the after-hours trading, the stock further gained $0.19 or 3.04%.
Kodak has agreed to sell certain private equity ownership interests and other illiquid assets held by the Kodak Retirement Income Plan Trust for the benefit of Kodak Retirement Income Plan or KRIP having an aggregate net asset value as of March 31, 2024 of $764.4 million for a purchase price of $550.6 million payable in cash at closing.
The Trust entered into or expects to enter into in the near term Purchase and Sale Agreements similar to the Agreement with four other investors pursuant to which the Trust agreed or will agree to sell and such investors agreed or will agree to purchase certain KRIP Illiquid Assets having an aggregate net asset value as of the Reference Date of $87.3 million for a purchase price of $61.7 million payable in cash at closing, except for $15.3 million of cash proceeds which are payable on a deferred basis on December 31, 2025.
Based on current assumptions, Kodak estimates KRIP would have surplus assets of between $885 million and $975 million after the satisfaction of KRIP's liabilities.
Assuming the consummation of the transactions contemplated by the Sale Agreements, the Trust will continue to hold KRIP Illiquid Assets having a net asset value of $161.3 million as of September 30, 2024. KRIP also owns interests in hedge funds having a net asset value of $917.2 million as of September 30, 2024 which are not included in the KRIP Illiquid Assets.
Kodak expects that it would direct the transfer of or otherwise contribute 25% of the surplus assets, which may include all or a significant portion of remaining non-cash assets to one or more qualified replacement plans for the benefit of current employees. In addition to the proceeds received by Kodak from KRIP, the Replacement Plan is projected to have assets having a value of between $220 million and $245 million which would allow Kodak to provide valuable benefits to its current employee base for the foreseeable future without additional cash cost to Kodak.
Kodak emphasized that the termination of KRIP would not affect the accrued benefits of any participants in the plan.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kodak Evaluates Options For U.S. Pension Plan, Including Potential Termination; Stock Surges

Chegg (CHGG) investors are bound to be disappointed with the stock’s roughly 84% YTD fall, which places it among the worst-performing Russell 2000 Index (RUT) stocks this year. Chegg stock just keeps getting cheaper, and has been falling to new lows this month. In this article, we’ll look at Chegg’s 2025 forecast and analyze whether the stock will keep falling to new lows, or if it CHGG can recover from its troughs. Let’s begin by looking at why Chegg stock has been falling.
Why Does Chegg Stock Keep Falling to New Lows?
The COVID-19 lockdowns helped to drive revenues of companies like Zoom Video Communications (ZM), Teladoc Health (TDOC), and Chegg. However, the entire group has since crashed - and to put it bluntly, their services now no longer appear as “critical” and irreplaceable as they were during the lockdowns.
All of the former pandemic darlings are either growing at a slow pace or worse, contracting. However, Chegg’s woes are much deeper than many of the other former “stay-at-home” companies, and it's facing a tough challenge from artificial intelligence (AI) companies like ChatGPT.
Chegg’s revenues have fallen YoY for nine consecutive quarters and the slowdown has only worsened. Its revenue fell by double digits in Q2, even as the decline was better than what the company forecasted. Its Q3 guidance implies a YoY fall of over 15%, which is even wider than the 10.8% that it witnessed in Q2.
With Chegg’s revenues falling so rapidly, it's not surprising that the stock has also been in a freefall. However, the question that needs to be asked is - has the stock fallen a bit too hard, and is the risk-reward now favorable, despite Chegg’s woes?
Chegg’s Valuations Are Quite Depressed
Chegg trades at a next 12-month (NTM) price-to-earnings (P/E) multiple of a mere 2.22x, while the market cap to free cash flow multiple is below 2. While value investors might ordinarily pounce on a stock with such low valuations – especially if it is a company with negative net debt (more cash than debt) on its balance sheet – CHGG's valuations are low for a reason.
Chegg’s revenue decline is not expected to improve anytime soon, and analysts expect its revenues to fall by 5.8% in 2025. While it's not exactly a rosy forecast, that would still be a lot better than the 11.7% YoY revenue decline that Chegg is expected to post this year.
Chegg Stock 2025 Forecast
Chegg elevated its chief operating officer Nathan Schultz to the position of CEO in April. Schultz was leading the company’s AI efforts, whose success will eventually determine the company’s future as it battles competition from the likes of ChatGPT, which is eating into Chegg’s membership numbers, and by extension its revenues and profits.
Chegg has set itself a target of achieving adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin of over 30% with at least $100 million in free cash flows. The company's current market cap is under $200 million, so the kind of free cash flows it is targeting could potentially enable it to repurchase half of its shares. That said, Chegg has already been spending generously on repurchases, but these haven’t yet stemmed the slide in its stock price, with CHGG touching a new low of $1.78 on Sept. 10.
Analysts Rate CHGG as a Hold, but See Massive Upside
Of the 14 analysts covering Chegg, 12 rate it as a “Hold,” while one each rates it as a “Moderate Sell” and “Strong Sell.” However, the stock’s mean target price of $3.91 is over twice the current price levels, and Chegg even trades below its Street-low target price of $2.
In July, Morgan Stanley upgraded Chegg from “underweight” to “equal weight,” even as analyst Josh Baer cut Chegg’s earnings estimates and trimmed his target price by half to $3.25. Morgan Stanley’s investment thesis was also based on the company’s low valuations and the resultant “balanced risk/reward.”
Will Chegg Go the Way of Kodak?
Given the existential threat that Chegg faces from AI companies, a section of the market worries that the edtech company might fade from relevance in the same manner as Eastman Kodak (KODK), which failed to evolve. To be sure, Chegg has also pivoted to AI - but the challenge remains to get more people to pay for its services and lure them away from platforms like ChatGPT.
GenAI platforms are far from perfect and often provide incorrect answers, whereas Chegg believes it can do better. The company is also expanding internationally and providing localized experiences. However, international pricing is much lower than what Chegg charges in the U.S., so its average revenue per user (ARPU) might come down as it adds more international users. Even within the U.S., the company might need to do more promotions to increase its user base.
All of that said, I find Chegg’s risk-reward to be favorable at these prices. Given the low valuations and expectations of a more stable revenue environment in 2025, the stock could bounce back next year, even as it remains a high-risk proposition.
More Stock Market News from Barchart
On the date of publication, Mohit Oberoi had a position in: CHGG , TDOC . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chegg Stock 2025 Forecast: Can CHGG Recover, or Will It Become the Next Kodak?

Semiconductor company Nvidia (NASDAQ: NVDA) dominates the market for artificial intelligence (AI) chips. In fact, analysts estimate its graphics processing units account for up to 95% of AI chip sales. But history is full of cautionary tales about the downfall of dominant brands that failed to maintain their technological leadership.
IBM was once a highly esteemed computing company due to its mainframes and storage solutions, but it failed to innovate around cloud computing and PCs. Cisco was briefly the most valuable company in the world, back when the internet buildout drove demand for its networking products, but it no longer ranks among the top 50 because it failed to innovate.
Those are just two examples from a long list that includes AOL, BlackBerry, Blockbuster, Kodak, and MySpace. To be clear, Nvidia is in no immediate danger of joining that list, but history says shareholders would be foolish to dismiss the idea completely. Indeed, recent warnings from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) make it clear that Nvidia is not immune to competition.
Here are the important details.
Apple's warning to Nvidia shareholders
Earlier this year, Apple announced a set of artificial intelligence (AI) capabilities for iOS and macOS devices called Apple Intelligence. Features include drafting and revising text, generating images, and summarizing notifications, as well as a more capable version of the personal assistant Siri. Apple Intelligence will launch in late October.
In July, Apple published a technical paper stating, "Apple Intelligence consists of multiple highly capable generative models that are fast, efficient, specialized for our users' everyday tasks, and can adapt on the fly for their current activity." The paper also detailed how two of those models -- one that runs on devices for simple tasks, and another that runs in private data centers for more sophisticated tasks -- were trained.
Importantly, Apple did not use Nvidia graphics processing units (GPUs) to develop its large language models. It used custom silicon called tensor processing units (TPUs) designed by Alphabet's Google and Broadcom. Notably, Broadcom is also helping other companies design custom AI chips, including Meta Platforms, OpenAI, and ByteDance, according to JPMorgan Chase.
Here's the bottom line: Apple's decision to use TPUs rather than GPUs to train its AI models is a warning that viable alternatives to Nvidia exist. The relative importance of that decision is yet to be determined. If Apple Intelligence is glitchy, it may turn into a cautionary tale about what happens when companies stray from the industry standard. But if Apple Intelligence is well received by consumers, Apple's decision to use TPUs may inspire other companies to do the same.
Amazon's warning to Nvidia shareholders
Alphabet's Google is not the only public cloud to develop custom AI silicon. Amazon Web Services (AWS) has done the same thing. Its custom chips -- Trainium for AI training and Inferentia for AI inference -- are not designed to outshine Nvidia GPUs on performance alone, but rather to give customers a more cost effective alternative.
Alphabet and Amazon have deep partnerships with Nvidia. Both companies offer compute instances powered by Nvidia GPUs and that will not change anytime soon. Nvidia GPUs are the gold standard in data center accelerators, so it would be nonsensical to not offer that option. However, both companies have seen fit to develop their own chips on the side.
Amazon CEO Andy Jassy recently said:
"We've heard loud and clear from customers that they relish better price performance. It's why we've invested in our own custom silicon in Trainium for training and Inferentia for inference. And the second versions of those chips, with Trainium coming later this year, are very compelling on price performance. We are seeing significant demand for these chips."
Here's the bottom line: Some companies will gladly pay a premium for Nvidia GPUs, but demand for AWS's custom silicon shows that other companies will gladly use slower chips to save money. In other words, AWS (like Apple) is warning investors that Nvidia will almost certainly lose market share in the future, which could pressure the company's margins as it fights to compete with cheaper alternatives.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, JPMorgan Chase, Meta Platforms, and Nvidia. The Motley Fool recommends BlackBerry, Broadcom, and International Business Machines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nvidia Stock Investors Just Got a Grim Warning From Apple and Amazon

The divergence between Intel (INTC) and Nvidia (NVDA) couldn’t be starker. While Jensen Huang-led NVDA is the best-performing S&P 500 Index ($SPX) stock, with YTD gains of over 114%, INTC is the worst performer, and has lost over 60% of its market cap. Intel's underperformance has been a long-term phenomenon, but things have been particularly bleak this year, after the company's Q2 earnings release spooked investors and the stock had its worst day in five decades.
In absolute terms, Intel stock trades just below $20, while its market cap is about $84 billion. In this article, we’ll discuss why Intel stock is so low, while other chipmakers have raced ahead.
Why Is Intel Stock So Low?
Typically, stocks are low because of a higher outstanding share count, massive underperformance, or splits – or a combination of these factors. As for Intel, the last split it did was way back in 2000, so the possibility of it being low due to a split is ruled out. Nvidia, incidentally, completed a 10-for-1 stock split earlier this year after the stellar rally in its stock,
Intel, on the other hand, completed four 2-for-1 stock splits between 1995 and 2000. That, as investors will recall, was during the dot-com boom, and names like Intel rallied amid the euphoria. That bubble eventually burst, and Intel is among those dot-com era companies that never recovered to those price levels.
Specifically, Intel hit an all-time high of $75.81 per share on Aug. 23, 2000, and currently trades at about a quarter of that price level. That’s about as bad as returns can get from a company in nearly a quarter of a century. Simply put, Intel’s stock price is so low because the stock hasn’t given any returns to investors, apart from the dividend that it suspended after the massive Q2 loss.
Intel’s Market Cap Compared to Other Chip Companies
While absolute price levels can be influenced by splits, market cap might be a better indicator to gauge how depressed the stock is. Intel’s market cap is just about $85 billion, while Nvidia commands a mammoth market cap of $2.6 trillion. The chip designing company’s market cap topped $3 trillion earlier this year, and it edged out Apple (AAPL) and Microsoft (MSFT) to become the world’s biggest company – albeit briefly.
Advanced Micro Devices (AMD) commands a market cap of over $215 billion, while Taiwan Semiconductor Manufacturing Company (TSM) – with whom Intel wants to compete with its foundry business – has a market cap of more than $700 billion.
Nvidia Only Recently Surpassed Intel’s Revenues
While Nvidia’s market cap is almost 30 times that of Intel, it only recently surpassed Intel’s revenues. In the trailing 12 months, Intel generated revenues of $55.12 billion while the corresponding numbers for NVDA, TSM, and AMD are $77.7 billion, $74.97 billion, and $23.27 billion, respectively.
Notably, while these companies’ revenues have been growing at a brisk pace – especially in Nvidia’s case – Intel’s revenues have been sliding, and its 2023 revenues were almost 25% lower than what they were in 2019.
As for Intel’s bottom line, the lesser said the better, and last year its GAAP net income fell 79% to a mere $1.7 billion. Among others, the company’s foundry business, which generated an operating loss of a whopping $7 billion last year, contributed to the steep fall in profits.
Intel’s Valuation Multiples Trail Peers
Intel’s valuation multiples also trail other companies in the chip industry. For instance, its next 12-month (NTM) price-to-sales multiple is 1.57x, while AMD and NVDA respectively trade at 7.4x and 19.6x. The low valuation multiples are reflective of the market’s pessimism towards the company. While Intel has been working on its IDM 2.0 transformation, and in a nutshell wants to be a combination of Nvidia and TSM, the path hasn’t been easy so far.
Intel’s NTM price-to-earnings (PE) of 52.6x is higher than both Nvidia and AMD. However, it’s because of tepid expectations for Intel’s earnings. Wall Street analysts are modeling earnings per share of -$0.39 from Intel this year amid the company’s woes. Low earnings over the next few quarters have bumped up INTC’s PE multiple.
To sum it up, sagging topline growth, tepid profitability, and low valuations are the reasons Intel stock is so low.
How Did Things Get So Bad for Intel?
Intel became the world’s biggest chipmaker in 1992 and held that position for years. However, the company’s dominance took a hit as the chipmaking industry gradually shifted to Asia.
Intel has missed many buses over the years, including the smartphone (and iPhone) revolution. More recently, Intel - like other chip companies - lost out to Nvidia, which capitalized on the artificial intelligence (AI) boom.
The company is currently fighting for relevance as companies like AMD and Nvidia are also eating up Intel’s market share in its core personal computer (PC) market.
Comparisons have already been drawn between Intel and other fallen giants like Nokia (NOK), Kodak (KODK), and Blackberry (BB), which once held dominant positions in their respective industries but are now pale shadows of their glorious pasts. While I believe Intel is not in that league – at least, not yet – CEO Pat Gelsinger has his task cut out for him as he tries to turn around the once-iconic U.S. enterprise.
On the date of publication, Mohit Oberoi had a position in: INTC , NVDA , AAPL , MSFT . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.