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Well said. Everyone kept acting like Intel “should be” an innovator but was somehow failing, when the shareholders were running it as a cash cow all along. Righ
by brookst 2y ago
Well said. Everyone kept acting like Intel “should be” an innovator but was somehow failing, when the shareholders were running it as a cash cow all along. Rightly or wrongly, they decided a long time ago that it would be more lucrative for Intel to be in decline, and that became self-fulfilling.
- glial 2y agoThis is another reason that any federal investment in Intel should have strings attached.
- AnotherGoodName 2y agoI think Intel should just be bypassed entirely. Each node is such a leap in process it requires entirely new fabs. At that point going with the poorly run incumbent is pointless. A few facts about intel. Wages have been stagnant there for over 20years now. Just recently they had wage reductions across the company and there’s been layoffs for those 20years of stock declines. Tsmc in Taiwan literally pays double on a ppp basis (it’s not even that far off on a direct dollar to dollar basis). Even china has been poaching from intel. Look up the Chinese government funded Lianqiu Lake R&D Center, they are offering more for talent in raw $ terms in a custom built luxury city. And yes I get that if you were born in the USA you probably want to stay there but there’s no hope of intel poaching international talent anymore. Do you know what the current boards plan is? More layoffs and lower wages. Like how the fuck can they compete without talent which they haven’t had for over 20years now. Everyone there knows it’s a stepping stone job. Do the bare minimum in hire and jump as soon as the next opportunity arises. And the government wants to give funding to this short sighted turd.
- sroussey 2y agoIntel is hugely bloated. - Intel: 126,000 employees - AMD: 26,000 employees - TMSC: 76,000 employees - NVIDIA: 29,000 employees
- AnotherGoodName 2y agoYou’d need to split that by business segment. Intel has more foundries than even tsmc and the others don’t have foundries.
- hedgehog 2y agoIf you add AMD (design) + TSMC (fab) it's not that far off from Intel (who does both, and sells >3x AMD by units). Clearly there are struggles at Intel but the simple math doesn't explain it.
- tester756 2y agoAMD 26K + TSMC 76K = 102k ~=~ INTEL (126K - 15K) = 110k
- mensetmanusman 2y agoYou might want to compare by operation.
- martinsnow 2y agoIntel is also invested outside cpu and gpu architecture.
- sroussey 2y agoIt does. No share buybacks for example.
- michaelt 2y ago> the shareholders were running it as a cash cow all along Those shareholders have seen an average dividend yield of 2.83% [1] in the past 5 years. In the meantime, the inflation rate has been 2.43%. And if you're about to say 'stock buybacks are more tax-efficient' the stock price is down 63% over that period. If you think that's a cash cow, you should see what an amazing deal 5-year treasury bills are, with their jaw-dropping 4% return on investment. [1] https://ycharts.com/companies/INTC/dividend_yield https://ycharts.com/companies/INTC/dividend_yield
- jahabrewer 2y agoGP probably means the 2010s, during which the board milked the company instead of investing.
- brookst 2y agoIndeed, that is what I meant. And the fact that it is a poorly-performing cash cow now does not mean it is not run as a cash cow.
- brookst 2y agoYou can run something as a cash cow and not get tons of money out, just like you can run something like a star without actually being successful. Intent != outcome