Fitch downgrades Intel’s credit rating

Fitch Ratings downgraded Intel’s credit rating to BBB from BBB-plus on Monday and issued a negative outlook, placing the US chipmaker just two notches above junk status.

Fitch cited intensifying competition from AMD, Qualcomm, Broadcom, and NXP Semiconductors as a major concern. 

The agency warned that Intel’s weak credit metrics will require stronger product demand, successful launches, and meaningful debt reduction over the next 12–14 months to improve its standing.

While Intel still holds strong positions in PCs and enterprise servers, Fitch said it faces “higher execution risk” due to its relatively weaker financial structure.

Intel’s liquidity remains strong, with $21.2 billion in cash and investments as of June 28, plus $12 billion in undrawn credit lines.

The chipmaker also faces pressure from falling PC demand and rising R&D costs as it attempts to catch up with rivals in AI and advanced chip production. S&P Global and Moody’s downgraded Intel’s ratings last year.