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Intel Corporation (INTC)

NASDAQ
Currency in USD
Disclaimer
35.04
+0.54(+1.57%)
Real-time Data

INTC Comments

RIP intel its time admit your loss to AMD im sorry intel fans
You do realize that Intel is not just designer semiconductor producer (like AMD) but also a factory (like TSMS)? Market is so overloaded with no-brainer zoomers with obinhood who just look on brand names and keep buying Tesla, Nvidia etc. I'm afraid these bubbles are going to burst soon...
Oh giving lectures and apparently dont understanding why Intels last quarter was so weak eh? You do realize that one of the main reasons for Intels drastically sinking margins, were their fabs right? They are roughly at 60% utilization, running at operating margin loss. Without fabs Intels quarter would have been only half as weak. They need full utilization to have good margins, every % less has drastical consequences. And they even keep on building more fabs, while everyone does the same too. This means in 1-2 years from now on, low utilization rates will be the new normal, thus lower margins will be normal. That way Intel will never come back to 53% or even 60% gross margins.
My point is, assets are asets true that, but fabs are slightly different. If you have much more capacity than demand your fawkd, your margins are fawkd. That is the main reason why all chip designers have less problems with their margins, but facing rather mostly only lower sales. For Intel having fabs means not just lower sales but also most importantly having costly fabs that eat up your precious margins. At first Intel tried to just overproduce and oversupply, but at some point they just ran out of free cashflow plus you cant sell more than what the market takes, even at hefty discounts. When its full, its full. So I am gonna repeat, fabs are rather a liability these days than a real help for Intel. It's in fact a very serious problem during this times of crushing demand. Demand will certainly recover to some degree (but its unlikely we will have 2021 levels back again), but every day later will take a hefty toll on Intel.
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