Thread regarding Intel Corp. layoffs

Nvidia sent out an earnings warning this morning, so we know that Intel execution isn’t the full story.

Recession / economic slowdown is definitely a large part of the story and is out of Intel’s control.

Don't be fooled to buy intel stock right now. Bottom price is $23.

Many project management types were previously mediocre engineers. Just work on your PM cert or MBA while the real engineers picked up your slack. Then you can basically fail up. No concept of what it takes to produce quality.

Out of all the noise below, I’ve been able to extract two coherent points:

1. management is bad and so Intel can’t execute to plan or the plan is bad

2. competition ( which has always been there )

It seems like #1 is the biggest risk as #2 has always been a concern from the beginning of time.

Pat promised to fix #1 and blamed previous management for the bad quarter ( bad form ).
Troops on the ground see no change in management practices which is concerning.

It comes down to - do you trust Pat to fix management issues or not? What’s Pat’s plan for fixing the execution issues?

The problem with Intel or any company that has bad quarterly earnings back to back needs to make major changes. First CEO, COO, and other high executives need to be replaced to get fresh ideas. They are just dead wood collecting millions. Then the number of management layers needs to decrease to 5 or less. The more layers, the worse the company does cause too many cooks, each one adding some salt that no one really know how much salt was actually put in and how much is really required, and who can't have salt at all until the earnings are calculated. No one is really keeping track and lack of communication. And then when they try to add gallons of water to make it less salty to meet the deadline, the ones paying for it are the guys at the bottom (engineers) who give up their weekends and weekday evening cause management keeps screwing up.
It's time to get fresh management that's not in the chip making business but actually knows how to run a business, that's energetic, and full of ideas. Not afraid to take risk to beat competition and making the work environment a place where people do like to communicate with each other and solve problems and share ideas, train member of the team, not be hoarders of skills thinking they are the best and always correct. You have to work as a team and your manager has to stop micro-managing and let the team work on their own without the manager asking thousands of questions.
I can keep writing but you get what I'm saying. Engineers are the ones who always pay the hefty price cause management from top to your immediate manager are all sc--w ba--s and don't know a thing about what engineers go through to straighten out the mess they have made. And when it's time to get a reward (bonus or salary increase), managers/executives always get more then engineers who stayed up all knight to figure out issues. Managers/CEO/Executives should not get more then 10%-20% of the lowest paid engineer in the team. This will cause management to work harder as a team.

Nice fairy tale.

Buy low sell high.

I don't look for significant underlying business challenges as good opportunities to execute the above mentioned investment strategy successfully.

Well do you think the competition doesn’t have anything in the pipeline?

You know, a lot of people thought INTC at $50 was the bottom, as it kept bouncing off it after earnings disappointments.

Then $45...

Then $40...

Intel's bottom is an open latrine in the Ganges.

PE ratio for 2022 would be the price of $35.39 divided by 2022 projected earnings of $2.30 per share of 15. That is considered on the high end for a company with declining earnings growth.

The divided yield of 4.1% is also quite high. A lot of times when a stock has a real high dividend it's because investors expect the dividend to be cut or for the stock price to perform so poorly that they need the higher dividend as compensation.

@tps+1i6UCIf4
Nothing in your post was specific.

What is Intel doing right now that will cause the stock to go lower? The market is already pricing in at least 3 years of no cashflow.

The core PC business still generates a lot of cash and that is getting reinvested in
R&D for fab tech. We also get government stimulus for this. At some point those investments will pay off even if Intel is second place to TSMC as they will at least become a second source and provide Intel with better fab economics.

Peddle it to WS, see if you can mustar up buyers vs selles to change that PE higher.

I'm not a buyer myself.

Lots of other businesses out there to invest with risk reward profiles I prefer.

I want Intel to succeed. I'm just not a buyer. They have a lot of issues to overcome to succeed.

Is it long term success or slow painful defeat. Not definitive or remotely predictable at this stage.

Look at businesses with cash flow and fewer systemic (decades in the making) hurdles to overcome to achieve what you are hoping for here.

What's the upside to you risking your hard earned money here vs other companies you could invest in.

Pick a top stock I guess is the short of it. Don't go gambling on a prayer. Despite the appeal it is still a prayer.

That said they do need sufficient people, like you, to ultimately be successful. So go for it! Intel needs you now the most!