This is the riskiest bet in technological history.
Intel could follow the path of other American goliaths such as IBM and General Electric. A slow slide to irrelevancy, spinning off business, and bringing shame to what was once pride for American ingenuity.
Instead of the conservative route, they are going to put the metal to the floor, spend every dime made on investing in manufacturing, design, and in general catching up in technology.
$INTC $TSM $LRCX $AMAT $ASML $AMD
Lol. Great post. Tx. Though I think, as you've also alluded, the riskiest bet in this case is doing nothing. I'll look at the numbers more closely, but even with their tepid financial results, stock isn't expensive, and while ofc growth is good, non-strategi growth is not.
I bough a starter position in INTC a few weeks ago, obviously down 10% today (net down 4%). Def don't plan to sell, and will be decide whether to add a bit more today after I read/list to the transcript.
@gkotak I think this is a great point: "the riskiest bet in this case is doing nothing." $INTC has really been struggling over the past few years as they couldn't keep up with Moore's Law on a key product (chips). Don't know if I'll buy just yet, simply because I want them to somewhat prove themselves first.
Great post! This is a very risky bet for them and tbh I don't have high hopes simply because they've pretty much crossed the chasm into zombie company territory. More so than anything, they've had a bad image which you mentioned: "After the firm struggled on the 14nm replacement for nearly a decade, to believe they can execute on this vision takes a whole lot of kool-aid."
The biggest hurdle they're going to have to overcome is how the public views them, and a newer company has the upper hand there. What would be a good idea for them to consider is changing their name, but it seems that won't be the case.