Daniel Pronk on $INTC (Nov 4, 2026)
Pronk is not interested in Intel at any price and calls it one of the worst chip stocks. Revenue grew 21% year over year to $16.5 billion, but Q4 revenue is expected at $15.5 billion, and revenue, operating income and cash flow remain far below prior highs. At 81 times free cash flow and 43 times forward earnings, he views it as too expensive after drifting from fundamentals.
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There has been a lot of news about stocks like ServiceNow, Intel, and even Fortinet collapsing drastically after releasing their earnings reports.
Shopify. Next we'll talk about Intel and Reddit. This is a very interesting topic.
Okay, now let's discuss Intel. Intel shares are down 60% from their highs and have fallen 50% in the past month. The company's share price fell sharply after it released its earnings report, bringing down the entire AI chip industry on the day of the release.
Looking at Intel's earnings report, their revenue grew 21% year over year to $16.5 billion, which was actually a good margin for the company. However, they expect revenue of $15.5 billion in the fourth quarter, which means they expect revenue to decline compared to the previous quarter.
The market did not take this well, as Intel was being valued as a very fast-growing AI chip company, like AMD. While Intel exceeded its target for the third quarter, its slower fourth-quarter revenue forecast has forced investors to significantly lower the stock's value.
Now, looking at Intel's cash flow statement, it can be seen that their operating cash flow is quite strong and stands at $13.2 billion so far this year, compared to just $5.4 billion in the same period last year.
Capital expenditures have also declined to $10.2 billion so far this year, meaning Intel is back in free cash flow positive territory and has generated $3 billion in revenue so far this year.
However, Intel's revenue is still far below their all-time highs. Although they are turning around and growing, they are still lagging behind and have a long way to go. Intel's operating income is also still very low and far below their all-time highs, which are nowhere near fully recovering.
And it's the same story with the operating cash flow. Their operating cash flow is still very low. It is coming back, but it is still about 50 percent of the way to reaching its previous high.
Despite all this, Intel's share price was skyrocketing and recently reached a new all-time high. I never understood why Intel's stock price was rising so much, but I think it had drifted too far from its fundamentals and become too expensive.
The market now seems to be correcting that mistake, but I'm still not interested in this stock because it's still trading at 81 times free cash flow and a 43 forward price-to-earnings ratio.
And ultimately, in my opinion this is one of the worst chip stocks on the market and at this price, or really at any price, I'm not interested in Intel stock.