Thread regarding Intel Corp. layoffs

Why should employees have faith in Pat?

2021
Pat rejoins Intel and the stock is $60, 3x higher than today. He outlines his plan to restore Intel to its former glory with 5N4Y. Intel headcount increases 10K during this year. Pat believes that the semiconductor demand situation is the “new normal” as we have had pandemic related capacity constraints.

2022
The PC market craters due to the pandemic artificial high demand coming back down to reality. The pandemic simply pulled demand forward which results in a multi year overhang as people over-ordered. Pat increases headcount by another 10K. Invests like a madman into foundry which is quite d-mb as there will be an overcapacity glut. He then says, with a straight face, that “this is the bottom”.

2023
The PC market has a tepid recovery and Intel stock rallies. Pat still spends like a madman with negative 7 billion in operating profit for IFS. He claims that Intel has landed a “whale” customer and we just need to wait until 2024 to reveal the name. We already know at this time that Qualcomm abandoned its relations with IFS. Intel has job cuts. Intel taps government and private equity to fund its ridiculous 5N4Y bridge to nowhere. Intel cuts the dividend as free cash flow is dangerously negative.

2024
Well, you know what happened…
Intel ran out of time and has nothing to show for 5N4Y

Through the years, Intel has made many profit and revenue forecasts which have disappointed.

Intel has had execution issues related to failing CPUs and a busted Meteor Lake launch.

Intel missed the AI megatrend and only offers half baked solutions with no meaningful revenues.

Intel invested heavily in ARC (under Pat) and failed miserably.

Pat has no idea what he’s doing.
He’s in over his head.
Intel is not the company he thinks it is in his head.
He refuses to accept reality.

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Post ID: @OP+1tS9U8A8

24 replies (most recent on top)

The Point is a Mystery....

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Post ID: @2laa+1tS9U8A8

@ttp Microsoft just received its first set of ARM chips from MediaTek. MediaTek is an IFS customer. Coincidence? I think not

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Post ID: @2nzy+1tS9U8A8

@ttp+1tS9U8A8 source - your a-s?

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Post ID: @1svn+1tS9U8A8

Whether Microsoft is a customer or not, they aren’t going to drive the volumes required to sustain a leading edge fab.

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Post ID: @1qtp+1tS9U8A8

Since BK Intel doesn‘t have a leader.
If you rely on these ELT members and the manager which only focus on PPT bullets, then we see what happend to a former great company.

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Post ID: @1dgx+1tS9U8A8

Pat is our savior

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Post ID: @1fmm+1tS9U8A8

You should not. But what choice do you have? Unless you have friends on the board, you have no say.

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Post ID: @1ice+1tS9U8A8

@ecw+1tS9U8A8 Yep. We are sc--wed. You heard it here first!

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Post ID: @1yev+1tS9U8A8

We lost Microsoft?

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Post ID: @ecw+1tS9U8A8

@vgx+1tS9U8A8

That deal doesn't exist anymore....

18A wasn't ready for high volume manufacturing, which Microsoft wanted...

IFS lost that customer

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Post ID: @ttp+1tS9U8A8

Previous CEO Bob Swan tried to bring Intel to 350B value company and was suddenly kicked out by some gangsters. Then they replaced him with paster PG and DZ to bring it down to below 90B company and more in destructive force.

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Post ID: @wan+1tS9U8A8

This is all a farce anyway and has nothing to do with the fundamentals of the business. Go to https://www.sec.gov/ix?doc=/Archives/edgar/data/50863/000005086324000124/intc-20240629.htm and go down to the Consolidated Condensed Statements of Income section. Compare most recent quarter with quarter a year ago. The Revenue is roughly the same, the Operating expenses also the same. Thus, the business itself has not changed (that said, the business seems to be at risk in general). Next, they decided to claim an additional 700 million in writedowns ("restructuring") and finally, the provision for taxes was huge last year. If I were the CEO, I would be all over the CFO for not properly managing taxes.

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Post ID: @gzt+1tS9U8A8

"Enlighten us on the return on this investment?"

$15 billion deal with Microsoft?

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Post ID: @vgx+1tS9U8A8

He/She who controls the fabs... controls something

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Post ID: @rvu+1tS9U8A8

Have Faith, and thou shalt be laid off!

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Post ID: @rru+1tS9U8A8
18A is already up and running though.

Enlighten us on the return on this investment?
Don’t expect Intel to recover the cost of capital on this boondoggle.
The market is not believing any positive return, that’s for sure.

Anybody can build anything - the trick is actually being profitable.

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Post ID: @syl+1tS9U8A8

Pat says in 2024

Taking a clean sheet view of the business is allowing us to take swift and broad-based actions

Ummm, why wasn’t this done in 2021?
Clown CEO.

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Post ID: @xly+1tS9U8A8

He has lost all credibility.

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Post ID: @ijr+1tS9U8A8

How many people were let go in 2023? 2022 was 10K;2024 is 15K.

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Post ID: @rtk+1tS9U8A8

Does 18A have any non-Intel customers of note?

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Post ID: @oev+1tS9U8A8

"Intel ran out of time and has nothing to show for 5N4Y"?
18A is already up and running though.

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Post ID: @afu+1tS9U8A8

Intel was on a failure trajectory long before PG came back, but PG has done nothing to alter the trajectory, which has now entered a terminal phase. His main skill compared to BS and BK seems to be how boldly he makes false promises. He imagines that he leads a version of Intel that no longer exists in reality.

I was never a believer, but I understood why some others were hyped up when he took the reins. However, anyone who still believes this guy has what it takes to execute a turnaround is beyond delusional. The things he says about Intel’s future are simply not going to occur.

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Post ID: @ryi+1tS9U8A8

He is our savior! A man of God! Show some respect!

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Post ID: @mom+1tS9U8A8

Nice summary. Key point you made: "Intel is not the company he thinks it is in his head.
He refuses to accept reality" Ego and complacency have been the pitfall of the last four Intel CEO's.

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Post ID: @vxs+1tS9U8A8

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