Intel is at a critical juncture where investment in fabrication is the best path forward. However, many investors prefer near-term profits to long-term growth,

Intel is at a critical juncture where investment in fabrication is the best path forward. However, many investors prefer near-term profits to long-term growth, even in the case of tech companies. "Though demand for server chips is helping bolster sales, the forecast adds evidence that profit is suffering from an Intel spending spree. Gelsinger, who took the helm last year, has embarked on an ambitious plan to overhaul Intel’s manufacturing." The narrative given credence by the article is that Intel's financial performance is worse when Intel decides to invest in fab infrastructure. However, this approach by Intel is the smartest move because fabs take long to build. Only a proactive company that lays out capex today will be positioned with enough manufacturing capacity in the event of future turbulence in the sector. That turbulence could come exogenously, for example in the form of a Chinese invasion of Taiwan, or it could come about naturally due to continued semiconductor demand creation. More fab capacity is essential in ways that the equity market rarely rewards.