Intel: Buying Back The Fab 34 Stake Is Not A Good Idea

Doug Collins163 FollowersFollow5ShareSavePlay(18min)CommentsSummaryIntel is repurchasing the 49% Fab 34 stake from Apollo for $14.2B, adding $6.5B in new debt and shrinking liquidity.INTC’s foundry segment lost $10.3B in FY25 with a negative 58% operating margin; profitability for advanced nodes is unlikely before 2027.Helium supply crisis and low 18A yields exacerbate cost pressures, amplifying operational risks and delaying mass production profitability.At 104x forward P/E, a 380% sector premium, INTC’s valuation prices in a turnaround not yet supported by fundamentals or operational progress. Sean Gallup/Getty Images News On April 1st, Intel (INTC) announced that it is buying back the 49% equity interest in its Fab 34 joint venture in Ireland from Apollo (APO) for $14.2 billion. This is the same stake thatThis article was written byDoug Collins163 FollowersFollowI come from the world of SQL queries, data visualization. My professional background is in data analytics and social media marketing, which gave me a weird but useful lens for looking at markets. I usually think in datasets, trends and pattern recognition before I think in headlines. I started learning about the investing and financial market during COVID like a lot of people, but unlike most, I never left. What started as buying a few stocks during lockdown turned into a deep dive down the rabbit hole and studying market structure, learning options. Over time I went from a casual investor to actively swing trading stocks and regularly trading Nasdaq futures. I also actively trade options and Nasdaq (NQ) futures as a swing trader, which keeps me plugged into short-term market dynamics, and volatility. When I am not staring at charts or digging through earnings reports, you'll find me training jiu-jitsu at my local academy.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.