Ok, so the good quarterly results came on the back of stable PC results and big increase in memory, as well as overall economy and tech rally. Intel still has not demonstrated a fundamental shift to new businesses or markets. However, most of the analysts (with the notable exception of S.Rasgon and a few others) have been fooled to believe in a shift to new stuff like autonomous driving, AI, etc. In the call, BK even said no significant revenue from those thrusts until the back half of next year or even 2019. NVDA is way ahead in these segments, and will be even further out of reach in another year. So, what's going on? Reality must set in at some point. I guess we will need another PC downturn or overall economy crash to find out. Intel will be in an extremely weak position in such a turn of events, much worse position than it was back in 2008-2009. This rally will not last forever, but until then, the party will continue.
6 replies (most recent on top)
stock market this year is doing good hence rising on the wave. That't it; when downward in market and earnings shruink rapidly with AMD/NVIDIA/etc., this stock will nose dive with given debt "amount" and 10nm stuff.
Wait to see when 10nm hits the bottom line
😉😂🤣😂🤣😂🤣😂🤣😂🤣😂🤣😂😂
Exactly. A company a large and diverse as Intel can move money back and forth to shape earnings, especially in the short term.
At the end of the day, though, no amount of CFO chicanery and cost cutting can cover the fundamental weaknesses.
CFO BS is basically on a tear to reduce costs everywhere. If you look solely at his targeted performance, he gets an EE. This will continue. BK will support BS' work since it fundamentally (yet) hasn't affected any of the golden eggs (CCG, DCG, IOTG or NSG). Intel also applies an interntal 'tax' to each product line and can move that around as they see fit. Finally, they have a ton of investments that BS is now cashing in to use to pad things elsewhere in the balance sheet. Taking some winnings off the table isn't a bad thing, but that will run out sooner than later.
All in all, the stock keeps chugging along, so why worry?
You should ALL be worried.
let's see how will each party goer fair after the party or when the sobering correction comes
It all does seem pretty odd...