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On paper Intel is still a very solid company in a dominant market position (albeit that market is not necessarily a growing one). It still has great margins and
by yywwbbn 5y ago
On paper Intel is still a very solid company in a dominant market position (albeit that market is not necessarily a growing one). It still has great margins and 6-7x higher net income compared to AMD. And has arguably caught up with AMDs CPUs this year. Despite that it’s market cap is almost the same as AMD’s. So if you believe Intel can successfully reform itself (maybe not an easy sell, but not totally inconceivable they have all the tools they need for that) it’s a great stock which is criminally undervalued.
- FredPret 5y agoThis is true. Valuation is key. If you could buy a barely-profitable shitty business for a dollar, it’d be a great deal. On the other hand, an amazing business like Apple is not worth buying if it costs you the Earth.
- popol12 5y agowhoah, AMD has same marketcap as Intel ? They were worth 2B 4 years ago, now 180B... Feels like they're massively overvalued rather than Intel being undervalued
- Kye 5y agoThey came up with a mobile chipset that has a GPU that isn't completely useless. That's worth at least $100B. My Ryzen 5 4500U+Vega 6 was close to the bottom end of the new chipset when it was new, and it does everything I ask of it whether that's a spicy Ableton Live project or an hour of Tunic.
- JonChesterfield 5y agoyou may have missed the Xilinx merger
- imron 5y ago> And has arguably caught up with AMDs CPUs this year. AMD is not the competitor they need to worry about. The future will belong to manufacturers that can produce powerful CPUs that power a device for a day on a single charge, without needing fans for cooling (like what we see with the ARM-based M1 from Apple). Low power/reduced heating costs will also be a big draw for cloud providers. If Intel can't compete there they'll be in trouble.
- philistine 5y agoSaying that Intel caught up to AMD is like saying Ford is saved because they won Le Mans. Come back to me when Intel can achieve M1 performance with the same power enveloppe.
- tpxl 5y agoM1 is not an x86 competitor, it's a laptop manufacturer competitor for the likes of Dell, Lenovo, ... I'll never buy a M1 CPU for my desktop because they wont sell me one to put in a rig I build.
- allie1 5y agoIntel is undergoing a change in what shareholders it attracts as well. It did catch up with AMD with Alder Lake, but it is also committed to very large R&D capital expenditures. So anyone holding it hoping for higher dividends and more buybacks is dumping, which is pretty much everyone that bought it before Pat Gelsinger took over. If they stay focused on the path they are on, they will turn it around. Anyone buying in now should be prepared to hold until 2025.
- lwkl 5y agoHow did Intel catch up? Their CPUs might deliver similar performance but they are way less efficient than AMD and Apple if we can count them as a third player. The next few years will tell if Intel's foundries can catch up with TSMC.
- hef19898 5y agoIs Apple really a competitor so? Both AMD and Intel are selling to third parties and have access to the huge market of Windows powered machines. Apple is using the M1 exclusively in-house.
- allie1 5y agoThey used to be losing out on both performance and efficiency. Now they are up to par at least on one of those. For foundry to be successful, they need one of the big clients - Apple, Qualcomm, Mediatek etc. If they find one of them, they'll pay for the fabs getting up to speed. It's brilliant building up the gpu segment alongside. They are building internal demand, so they can be their own "trailbrazer" client for foundry.