Reuters reported that chip manufacturer Intel has faced the pressure of multiple reviews recently, highlighting the severe challenges it faces in the increasingly fierce market competition. The judging institutions generally believe that Intel needs...
Reuters reported that chip manufacturer Intel has faced the pressure of multiple reviews recently, highlighting the severe challenges it faces in the increasingly fierce market competition. The judging institutions generally believe that Intel needs strong market performance and vigorous financial adjustments to have the opportunity to regain its former glory.
4-day credit agency Fitch announced that it would lower Intel's credit ratings to level one. This will reduce Intel's rating from BBB+ to BBB, and bring negative outlook, making it only two levels away from the "Spam Bonus" level. However, this is not the first time Intel has experienced a downgrade, and another rating agency, S&P Global, has also downgraded its credit rating from BBB+ to BBB in December 2024. As for Moody’s Ratings downgraded its advanced uninsured debt rating in August 2024. These continuous downgrades undoubtedly knocked the alarm for Intel's financial situation.
The core reason for Huixian's downgrade is that it evaluates that Intel is increasingly severe in maintaining product demand, and the market competition is one of the main factors. Huiming pointed out that although Intel has maintained a strong market position with its counterparts from its Dutch counterparts, NXP Semiconductors, Broadcom Inc., Qualcomm and AMD. But the rise of these new competitors is gradually invading their market share.
Huixian analysts pointed out that Intel's credibility indicators are still weak. To restore its recent ratings, Intel not only needs stronger end-market performance, but also successfully promotes new products and reduces penalties in the next 12 to 14 months. Although Intel has a better market position than other similar peers, its financial structure is relatively weak and faces a higher "execution risk". This means that Intel may face more uncertainties in implementing its business strategy and financial goals.
In order to regain previous credentials, Huizhi clearly stated that Intel needs to increase the shipment of its PC products while reducing debt on its asset debt list. This is a double challenge for Intel, because it is not easy to stimulate market demand and financial burdens both to save.
Despite the multiple challenges, Hui Yu also affirmed Intel's stable fluidity. Because as of June 28, 2025, Intel has $21.2 billion in cash, appointment cash and short-term investment in his hands. In addition, the company has an unused circular credit limit of $7 billion, and another 364-day circular credit limit of $5 billion, which will expire in January 2026 but not yet used. Adequate cash and available credit limits provide important financial flexibility for Intel in adjusting business strategies and debt.
