To The Moon

Intel Recent Summary:

• On August 11, after meeting with Intel’s CEO, Trump softened his stance and no longer demanded the CEO step down, leading to a stock rebound;

• On the earnings side, Intel’s Q2 revenue beat expectations, but profitability dropped sharply;

• Q3 guidance missed expectations, with margins under pressure;

• Demand pulled forward due to tariffs, so H2 outlook is conservative;

• 2026 capital expenditures projected to be lower than 2025—management remains cautious on future development;

• The company offered almost no details on its AI plans.

How to Evaluate:

• Trump’s attitude doesn’t change Intel’s weak fundamentals;

• Fierce competition from AMD and ARM, lack of an AI product line, and ongoing losses in the foundry business;

• On the positive side: Intel has shown cost control, capital spending discipline, and renewed focus on core competitiveness;

• Valuation is extremely cheap—P/E isn’t really applicable;

• Valuation method: 2.6x EV/Sales.

Trading Strategy:

• If you hold INTC stock, you can sell out-of-the-money call options to generate yield in this phase;

• The stock is cheap—if the market stays bullish and INTC trades in a range, consider selling out-of-the-money puts.

Reference Strikes and Expiry:

• Covered call strategy: $INTC 20250822 24.0 CALL$  (83% win rate)

• Put selling strategy: $INTC 20250822 20.5 PUT$  (85% win rate)

$Intel(INTC)$