$105 Billion of PlantNarrow moat

Intel (INTC) — moat facet

Intel is the only company doing leading-edge chip research and volume manufacturing in America, and its factories are half of everything it owns.

Intel is unusual among large chip companies in owning most of what it needs to make its chips. Net property, plant and equipment was $105,741 million at 27 June 20261, about half of total assets of $202,439 million23. Intel has 65 million square feet of facilities, 60 million of them owned4, and it says it plans to continue manufacturing the majority of its products in its own factories5.

Balance sheet, 27 June 2026 ($M)202,439Total assets105,741Net property and plant87,542Intel stockholders equityIntel Q2 2026 results release
Half of the balance sheet is plant.

That scale is a moat of a kind. Intel says it is the only company conducting both leading-edge semiconductor logic research and development and high-volume manufacturing in the United States6. No one else can offer an American customer that combination today.

It is also a burden. Intel estimates that the substantial majority of its consolidated depreciation expense is incurred by Intel Foundry7, which is why the foundry loses money while the product groups earn it. The factories cost the same whether they run full or not.

Intel has already had to shrink the plan. It slowed construction of its Ohio fab and discontinued planned expansions in Germany and Poland to align spending with demand8.

The scale is also a measure of commitment the market cannot easily value. Intel's facilities total 65 million square feet9, and it had capital expenditure commitments of $9.1 billion for 2026 at the end of 202510. Management said its investment in American tools and space from 2021 to 2026 was approaching $100 billion11. The plant is the largest single asset on Intel's balance sheet and the one whose value depends most on customers it has not yet found.

Owning the factories is only an advantage if they are full. The number that would show it is the foundry's operating loss as a share of revenue, 36% in the second quarter of 202612; a move below 20% would say the plant is finally carrying its weight.

Moat trajectory: Holding steady

The plant stays near $105bn; Ohio slowed, Germany and Poland cancelled.

The number that tests this moat
Reported
Net property, plant and equipment, latest quarter
$105,741M (30 June 2026), about half of total assets

The factory base; write-downs or further cancellations would show capacity the market does not need.

Source: Intel Q2 2026 results release ↗
⚠ Threats to the moat
⚠ THREAT 01
Germany, Poland and Ohio: The Fabs Not Built
Intel cancelled its planned fabs in Germany and Poland and slowed Ohio, so part of its promised capacity will not exist.
References
  1. ReportedNet property, plant and equipment was $105,741 million at 27 June 2026, about half of total assets of $202,439 million.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  2. ReportedNet property, plant and equipment was $105,741 million at 27 June 2026, about half of total assets of $202,439 million.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  3. Moat Explorer calcNet property, plant and equipment was $105,741 million at 27 June 2026, about half of total assets of $202,439 million.
    Moat Explorer calculation from Intel's reported figures ($ millions unless stated). Segment margins 2025: Client Computing 9,317 / 32,228 = 28.9% (2024: 11,594 / 33,346 = 34.8%; Q2 2026: 2,343 / 8,877 = 26.4%); Data Center and AI 945 / 15,980 = 5.9% (2023), 1,414 / 16,125 = 8.8% (2024), 3,422 / 16,919 = 20.2% (2025), 2,474 / 6,262 = 39.5% (Q2 2026); Intel Products 12,739 / 49,147 = 25.9%. Revenue shares 2025: client 32,228 / 52,853 = 61.0%; data center 16,919 / 52,853 = 32.0%; together 49,147 / 52,853 = 93.0%. Client growth Q2 2026: 8,877 / 7,871 - 1 = 12.8%. Foundry: internal revenue 17,826 - 307 = 17,519, 17,519 / 17,826 = 98.3%; external share 307 / 17,826 = 1.7%; operating losses 7,083 + 13,291 + 10,318 = 30,692. Intel share of x86 server revenue Q1 2026: 100 - 46.2 = 53.8%. Revenue 2025 against 2021: 52,853 / 79,024 - 1 = -33.1%. Headcount 82.3 / 124.8 - 1 = -34%. Government stake 433.3M x $127.39 = about 55.2 bn; purchase funds 5.7 + 3.2 = 8.9 bn. Warrants 241M x (127.39 - 20.00) = about 25.9 bn. Nvidia stake 215M x 127.39 = about 27.4 bn; 215 / 4,994 = 4.3%. Backers 11.0 + 8.9 + 5.0 + 2.0 = 26.9 bn. Apollo 14.2 - 11.0 = 3.2 bn. Mobileye 100% - 23% = 77%. Net debt end-2025: (2,499 + 44,086) - (14,265 + 23,151) = 46,585 - 37,416 = 9,169; 27 June 2026: (1,988 + 48,549) - (12,874 + 16,853) = 50,537 - 29,727 = 20,810. Shares: diluted 4,530 / 4,090 - 1 = 10.8% (2021-2025); outstanding June 2026 5,043 against 4,090 diluted in 2021 = 23% more. China share of revenue 12,694 / 52,853 = 24.0% (2025); 15,532 / 53,101 = 29.2% (2024); China 12,694 / 22,961 - 1 = -44.7% (2021-2025). Gross margin 43,815 / 79,024 = 55.4% (2021); 21,711 / 54,228 = 40.0% (2023). R&D 16,546 - 13,774 = 2,772; R&D share of revenue 13,774 / 52,853 = 26.1% (2025), 16,546 / 53,101 = 31.2% (2024). Operating cash flow to gross capital spending 9,697 / 17,672 = 0.55. All Other external revenue: 54,228 - 32,305 - 15,980 - 547 = 5,396 (2023); 53,101 - 33,346 - 16,125 - 159 = 3,471 (2024); 52,853 - 32,228 - 16,919 - 307 = 3,399 (2025). Trailing EPS to June 2026: -0.06 - (-0.19 - 0.67) + (-0.73 - 2.16) = -2.09. Market value 669.37 / 86.48 = 7.7 times end-2024; share price 127.39 / 29.23 = 4.4 times the 52-week low - other arithmetic. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Intel's Forms 10-K, 10-Q, results releases, prepared remarks and market data; operands shown in the source line.
  4. ReportedIntel has 65 million square feet of facilities, 60 million of them owned, and it says it plans to continue manufacturing the majority of its products in its own factories.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1 business: products, process technology, competition, manufacturing and customers. — FY2025 · publ. 23 January 2026 · source ↗
  5. ReportedIntel has 65 million square feet of facilities, 60 million of them owned, and it says it plans to continue manufacturing the majority of its products in its own factories.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1 business: products, process technology, competition, manufacturing and customers. — FY2025 · publ. 23 January 2026 · source ↗
  6. ReportedIntel says it is the only company conducting both leading-edge semiconductor logic research and development and high-volume manufacturing in the United States.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1 business: products, process technology, competition, manufacturing and customers. — FY2025 · publ. 23 January 2026 · source ↗
  7. ReportedIntel estimates that the substantial majority of its consolidated depreciation expense is incurred by Intel Foundry, which is why the foundry loses money while the product groups earn it.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  8. ReportedIt slowed construction of its Ohio fab and discontinued planned expansions in Germany and Poland to align spending with demand.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1A risk factors and legal proceedings. — FY2025 · publ. 23 January 2026 · source ↗
  9. ReportedIntel's facilities total 65 million square feet, and it had capital expenditure commitments of $9.1 billion for 2026 at the end of 2025.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  10. ReportedIntel's facilities total 65 million square feet, and it had capital expenditure commitments of $9.1 billion for 2026 at the end of 2025.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  11. ReportedManagement said its investment in American tools and space from 2021 to 2026 was approaching $100 billion.
    Intel Q2 2026 earnings call prepared remarks (CEO and CFO). — Q2 2026 · publ. 23 July 2026 · source ↗
  12. ReportedThe number that would show it is the foundry's operating loss as a share of revenue, 36% in the second quarter of 2026; a move below 20% would say the plant is finally carrying its weight.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
Sources
Generated September 25, 2026