Thread regarding Intel Corp. layoffs

This IS the strategy

People who look at the Board and think they are clueless and have no strategy might consider that there is a strategy and they are executing it right now by bringing on a venture capitalist as CEO.

I'd agree that the Board has done miserably if the strategy was to create a world class product and foundry organization. In fact, it is not clear to me how they could do worse at that strategy than they have done so far.

But if the strategy was to milk x86 for whatever profits remain as the installed base is replaced by ARM, then the grade is still not awesome, but better.

If that strategy includes the gradual breakup of the company, then what is actually happening makes a lot more sense. Not sure the Board is executing that very well either, but at least what they have been doing makes more sense in that context.

Consider all the meetings they have had with potential suitors, which seems to have raised a key sticking point of valuation. So they bring in LBT, who has a long & successful track record of managing companies to extract the maximum value when taken public.

Reducing the product portfolio to the most profitable products could be seen as something to do whether breaking up the company or not, but see how they handle the product groups to be divested. Do they first try to maximize profitability and thus valuation?

Same goes for the fabs. If LBT and the Board start selling the non-EUV fabs in an effort to get IFS to profitability then do they start that process with headcount reductions and other efforts to increase valuation?

The company is never, ever going to publicly state what strategies they are pursuing, and often there are multiple strategic options being considered, so the effort can morph over time even if the same basic strategy is still in play.

Just watch the actions and see if they really are about trying to revive Intel, or merely to reduce cost (often at the expense of longer term growth).

@jq+1jsq7rfqc said it perfectly.

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| 1731 views | | 5 replies (last April 28, 2025) | Reply
Post ID: @OP+1jsxv6xj3

5 replies (most recent on top)

@b0, OP copied everything including the last line 😂. I agree with what @ae said too, it’s not the same Intel and never will be.

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Post ID: @b6+1jsxv6xj3

Nvidia is fairly straightforward with his strategy, there’s just not a lot Intel can do with Jensen’s Huang 9/10ths of the way down its throat.

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Post ID: @b5+1jsxv6xj3

I was going to complain about OP copying my post, but this may be worth repeating.

I'm not certain this is the strategy but it so far is the best fit that I can see.

Because strategy is never stated publicly (because it would invite counter strategies by the competition), everyone is left to guess about the ultimate goals.

The Board usually will try to build optionality, to enable them to take advantage of emergence. This can look like they are waffling but that is usually not the case.

That's why I focus on x86, because any strategy that refuses to move beyond x86 almost has to be one of breaking up the company over time.

Architectures have a lifecycle and x86 is ready for assisted living.

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Post ID: @b0+1jsxv6xj3

Yup - I am so surprised that people still think they are trying to save Intel. It’s like hidden in plain sight and truth is they are not really hiding it.

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Post ID: @ak+1jsxv6xj3

Yes. It is a strategy. Do you realize how many times the board has changed strategy in the past 20 years? Read between the lines already. If you haven't noticed Intel has quietly been pieced out by mob tactics. You have Conglomerate firms owning 49% RE and others owning 51% of a product. Say goodbye.The axeman cometh.

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Post ID: @ae+1jsxv6xj3

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