The company is crumbling and losing money!!
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You know it could get very interesting here... Intel credit rating was cut in Feb. S&P said, 'we believe Intel's profitability and cash flow will remain strained...'
boy, what an understatement.
Intel issues $11B in new bonds in Feb. In Q2, Intel generated about $1B cash from operations but then spent $15B on new plant and equipment investments. So, you can see where this is going...
If Intel keeps this up, this up without cutting head and or generated operating cash they will have to raise more capital and/or cut the dividend. Watch for continued credit rating downgrades carefully. That will be your first clue that stakeholders are getting concerned about the company.
If the credit rating downgrades continue, this will put huge pressure on the board to rethink this IFS gamble they have laid down. It should be very fun to watch this unfold. Pat has this bold idea of 5 nodes in 4 years... but, what nobody tells you is that the customers can't absorb all these processor changes that fast and Intel ends up with huge manufacturing write-offs due to pre production waste and factory underloading charges. It just a broken business model in a commoditized market.
If Intel has Pat for two more years the successor will be a bankruptcy trustee or committee,
Pat is safe for 2 more years.
It will be interesting to see who is put in place as his successor.
Ah good, I thought the BK brown noser had gone back under his bridge, but he’s still making salty threads
💥💥 BOD approved of the strategy and will now ride this one into the ground... 💥💥
What strategy is Pat ignoring?
- Cut heads to match TSM / Nvidia on revenue per head basis.
- Give up the IFS 'moonshot' wishful thinking.
- Outsource fab services since it is no longer a core competency.
(evidence: Intel has higher cost, no ecosystem, no flexible shuttle capability,4 years behind on EUV and 40 years behind TSMC on customer centric manufacturing acumen)
How can the Bluescreen Of Death get rid of Pat?
Ok, Pat leaves. Now what? What is the strategy going forward that Pat is ignoring?
When the company diversity quota meets HR's goals and he-l freezes over.
Never. The captain must leave the ship last.
Intel can’t afford to keep up with TSMC on just x86 volumes alone. TSMC’s customers have an infinite money hose that feeds a virtuous cycle that keeps TSMC ahead.
So either dump TMG and let design teams use TSMC or go the IFS route.
Neither one is particularly attractive.
What is the board supposed to do?
Intel cannot maintain its current cost structure as-is. Something has to give sooner rather than later.
BOD needs to go. Pat is seeing how messed up things got after political ACT. No grade 9 or above is safe if you have a paper trail to BK MuAhahahaha
In for a penny, in for a pound...
BOD approved of the strategy and will now ride this one into the ground...
Pat is with us through thick and thin.
If you are not happy resign 😁