Intel’s credit rating downgraded to BBB+ by S&P

Just a week after Intel published its disastrous quarterly report, its Moody’s credit rating was downgraded one notch to BAA1, and it took S&P a little longer to take similar action against the borrower. Intel’s solvency is now considered only satisfactory by S&P representatives.

Image Source: Intel

As Seeking Alpha explains, the downgrade of Intel’s credit rating by S&P from A- by one notch to BBB+ was caused by a reassessment of both the results of the previous half of the year and the prospects for the next two or three years. In the last half of the year, as S&P representatives note, Intel performed worse than expected in all key business areas, including client, server and AI, telecommunications and edge computing. Intel’s corporate clients, as experts note, are focused on the artificial intelligence segment, while other Intel divisions receive less funds than planned.

Moreover, S&P believes that Intel’s revenue will also not reach its planned level in the next two or three years. First, customers will save money. Secondly, the competitive environment will be tense in all market segments in which Intel is represented with its products. Demand for Intel products in the server components and AI segment will also be lower than expected in the current half of the year, S&P representatives added. In the server CPU segment, Intel faces growing competition from AMD.

admin

Share
Published by
admin

Recent Posts

Ireland to Probe Legality of Training Grok AI Model on Europeans’ X Posts

The Irish regulator has launched an investigation into Elon Musk's social network X over its…

8 minutes ago

Perm Polytechnic University has figured out how to transmit data inside a well via drilling mud

Perm National Research Polytechnic University reported that its scientists have turned the drilling fluid inside…

8 minutes ago

Baldur’s Gate 3’s Latest Major Update Finally Has a Release Date — Not Long to Wait

Developers from the Belgian Larian Studios have announced the release date of the eighth major…

1 hour ago

Japan Out of MicroSD Express Memory Cards as Resellers Prepare for Switch 2 Release

According to online sources, microSD Express memory cards have sold out at e-commerce stores across…

1 hour ago

Baldur’s Gate 3’s Latest Major Update Finally Has a Release Date — Not Long to Wait

Developers from the Belgian Larian Studios have announced the release date of the eighth major…

1 hour ago

Japan Out of MicroSD Express Memory Cards as Resellers Prepare for Switch 2 Release

According to online sources, microSD Express memory cards have sold out at e-commerce stores across…

1 hour ago