https://twitter.com/SquawkStreet/status/1628435633348784131?t=J28jb43r2DHInDrm2ZsO_g&s=19
11 replies (most recent on top)
10nm is way more than 5 years delayed, work on that started probably 12-15 years ago. Just saying.
Intel’s problem is far larger than money for both IDM and IFS. Saving a few billions in dividends, cutting salaries symbolizing frugality, nor a few thousand layoffs won’t either.
Factories at the leading edge cost easily 20B or more and need to be huge volume and full to recoup the investment over decades or more. Also the volumes and business must have huge diversity as the RD burn is billions / quarter needs decades to recoup. The x86 IDM is a model from the 90s.
A decade ago the costs as well as scale needed was smaller and Intel had scale and leaderships. Missing the mobile and giving up on it and multiple half hearted and failed IFS when they tried were huge strategic missed and they are now beyond recovery.
Today Intel competes with TSMC which is really a collaboration and ecosystem of EDA, IP, tools and customers that drawf anything that Intel can save a few billions nor the CHIPs act can nurture to become really competitive or have scale.
Apple, Nvidia, AMD, Qualcomm, MediaTek and so many others all are part of the ecosystems and customers that feed TSMC to have scale and efficiencies that Intel can’t possibly save or get grants to become relevant.
Let’s take a look at Intel10/7 really the same, five years delayed and make what 70% of x86. Compared to TSMC that ran it and makes all of Apple, AMD and so many others and will still be dropping cost and making things ten years from now. Intel10 will be an empty shell in ten years. How can Intel compete ? Will Intel10/7 have any foundry and how can it compete with TSMC N7/N6 or N5 or N4?
“Economic headwinds” is an excuse for bad performance.
Funny how “economic tailwinds” is never used as a reason for good performance. It’s always management’s brilliance.
Management is inept.
Everyone sees it now.
The obvious lesson to anyone here: do not ever be held back by imposter syndrome.
A group of imposters destroyed a company, got paid millions and millions to do so, and will land on a nice cushy, but slightly smaller, pillow in business class.
Get in and STACK cash, who cares about performance. It’s mostly a crapshoot anyway, and a game of executive chest-puffing to take credit for things they can’t even control.
Their thrashing and lack of any strategy is out in the open plain for anyone to see. It’s actually scary.
ELT has zero credibility on the Street, and in its own backyard.
Investors with half a brain understand Intel can no longer justify paying a dividend if it only makes money when the economy roars. Employees do too.
Somehow, ELT are the last ones to acknowledge this. So they did what they were going to HAVE to do (cut dividends) and managed to totally nuke morale at the company to the point Blue Badges are literally beating each other to death. And still - nothing but smugness from the cash incinerator that is Intel HQ.
They were right last week when they said, "You can choose to play (and buy NVDA), Or go and buy Intel and wish..."
https://www.youtube.com/watch?v=a26GkQhA3HA&t=151s
“I have no conviction that their forecasts are right at all...How many times did this company say that their dividend was safe?" @jimcramer says after $INTC slashed its quarterly dividend by 66%, adding: "I'm tired of it."
CN anyone believe a thing out of any of the ELT? 4 in 5, rear view mirror, MIG?
Yep, festering wounds of years gone by under PSO/BK/BS, and toxic waste Intel management buried inside have caught up with the company. The once mighty giant Intel has fallen due to the rot from within. PG certainly has his work cut out for him.
Now where's the 'joker' who recently posted saying "Everything is Fine"? We could all use a good laugh. It might keep some from crying.
Just trying to right the ship in the midst of economic headwinds.
I'm sick of their lies too.
Cutting the dividend is good imo (your opinion may differ) but what really gets me is the internal bluster beforehand that cutting the dividend wouldn't make a difference, that it was irrelevant.
It's clear now they were lying (though many suspected) and now they've been lying externally too.
It's all a sham