Thread regarding Intel Corp. layoffs

Semiconductors are being exempted from the US tariffs, along with other electronics.

That should help the megacap tech companies rally into earnings, then see what their guidance looks like as they consider a global recession.

There seems to be little chance of avoiding a slowdown, which was expected anyway in 2025 even before tariffs. Recessions are the correction of what is often abnormal fiscal or monetary policy, and we have had a lot of that since 2008. The price discovery that enables is ongoing and I think has much further to go, but the steepest rallies are in bear markets.

I think LBT and the Board were already highly motivated to greatly reduce cost and shut down or sell underperforming business units in IFS and Products. As they look forward to impaired earnings for this year and next, they will likely get even more aggressive with these efforts.

There is the opportunity to reduce Intel to a limited list of core activities, and that could over the next year result in fewer fabs and many fewer products. Divestitures will take time, but clearly there is an immediate headcount reduction in the works, and they may fold into that people in business units which will later be eliminated.

So the number could be 10k, but it could also be 40k.

Really nice setup for the stock to rally very sharply, possibly to the upper $20s, if the market feels the company has finally gotten the cost reductions ahead of the ongoing revenue decline. It's all about profit margin.

Trading the volatility and not certain that the bottom is in the market or Intel. Might have put in a peak extreme but that often happens before the real low is in.

Companies are going to pull back guidance a lot, so although I like the potential for a rally if LBT and the Board are driven by the share price to get serious about what should have already been done, hard to imagine extreme upside in any stock right now.

Looks like the potential separation of US and China economies will cause a deep recession and I suspect the bond market is showing the withdrawal of foreign money from US markets. That may also be affecting the basis trade but I think that is merely an effect. The world was overinvested in US markets because of the growth caused over the past 4 years by ever-increasing deficit spending. A trillion dollars of debt every 100 days attracts a crowd.

So that was gonna end anyway and now is supercharged by the slowing of trade due to tariffs. Now we see just how much growth China and the EU were in fact taking from the US. It will take a while for companies to adjust and that should work very well for the US, but in the meantime growth here and elsewhere will slow down.

So while LBT may be able to spark a rally (if he really does some shock and awe), the stock is still a trade, imo, and a very nice one at that.

Not sure how any deal with China can be made, since they have not honored any of their past agreements.

I thinkk most who are paying attention realize it was a mistake allowing China into the WTO in 2000. They proceeded to steal growth, middle class jobs and intellectual property from the world ever since.

This should not be a partisan issues, although I get why the globalist uniparty members want the US to capitulate or sign on to another worthless deal.

I'm hopeful the tariffs remain indefinitely, and go up as needed when China further devalues their currency and hands even more debt fueled stimulus to their industries. They are not gonna stop, because that is how a communist system works.

See if companies mentione using foreign exchange in their earnings calls, as a way to moderate the tariff impact.

china will fold. they are tanking now.

If anything China has proven to be the real tariff issue, one that should not be placated any longer. But nice to see other (non-communist) countries lowered back to 10%.

Still, for Intel the China issue means impairment of $8B revenue. Add to that the certainty that a global recession is now a thing. The market was technically oversold, just in time for an earnings season bounce, so it does.

If anything, the situation will drive LBT and the Board to make the largest changes as soon as possible, because they can clearly see what is coming.

Likely multiple fabs are in warm down and some might get sold. Workers would be either furloughed or some combination of layoffs and being placed on leave, and that could last a while by the look of it. TD could/should be cut in half.

I'd expect the product side to be slashed down to the core business, focused on CPU and GPU/AI.

So I'll continue to trade the stock and it is one of the few stocks I'll hold through this earnings season. If LBT goes big then that should be enough to maintain profitability and the stock will like that.

Not sure why most companies would be able to prevent further downside, and this earnings season may contain some terrible guidance, simply due to the effect of China trade being shut down.

Lots of companies had a business model which leveraged unfair trade practices by China and other asian nations. That model just blew a gasket.

Don't buy any product that are from US and China to avoid the high tariffs and make the world more peaceful. Agree?