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Intel’s Multi-Year Turnaround: Why They Can’t Make Enough Chips
Intel has stabilized its balance sheet under CEO Lip-Bu Tan, using cash from the U.S. government and Nvidia to reach free cash flow profitability. However, achieving this required aggressive cuts to capital expenditures, creating a CapEx trap where Intel now lacks the manufacturing capacity to meet rising demand for its new designs. This supply constraint forced the company to issue weak Q1 2026 guidance, as they simply cannot get enough product out the door.<br>
This struggle underscores the difficulty of the IDM model, which requires funding both cutting-edge design and massive…
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