News Intel 2Q24 Financial Results

[maddie]

Intel CEO is quoting scripture on X is this bullish or bearish.

Bearish.

"be steadfast in all your ways"

Is he saying nothing will change?

 

[John Carmack]

Did one year ago -

1. Warren Buffett halve the stake of B-H in Apple?

2. The Philadelphia Semiconductor Index fall by 22% in less than one month?

3. The Sahm rule get triggered after the latest unemployment data?

4. The 2/10 yield curve come just 9 bps close to turning positive?

I await proper answers.

They have poor looking financials and numbers. They have shown little growth in decades. They have a poor product stack. Future products are being cancelled left and right. Their revenue is falling in lockstep with the lack of leadership products. The staff with talent are bailing. They are saddled with loads of debt and a collection of dubious factories. They have withdrawn from several markets as they are being squeezed on all sides by competitors.

So in short, the answer is yes I do think the market is being unfair to them and a recession should be kinder to them than would to Apple, Samsung, TSMC, Nvidia, Mediatek, AMD, Qualcomm, Micron, SK Hynix, Broadcom, and ASML.

 

[myl]

Intel CEO is quoting scripture on X is this bullish or bearish.

In Intel's current situation, it's better to let Jesus drive.

 

[DavidC1]

Here is some more on Intel the precision and scientific approach of Intel forecasts for things such as TAM, fab capacity planning - daughter Maya:
(thanks to SemiAnalysis for the summary)

He could be correct for a segment of the population. Seeing as he's senior management in a large corporation, maybe that's the case for American girls with rich dads?

 

[DrMrLordX]

In Intel's current situation, it's better to let Jesus drive.

And if he says no?

"Sorry, can't help you guys, have fun going to that . . . you know, other place"

 

[cytg111]

I think government should bail them out. Its a simple measure of national security. The prospect of losing access to top tier fabbing -> NOPE.

 

[Gideon]

I think government should bail them out. Its a simple measure of national security. The prospect of losing access to top tier fabbing -> NOPE.

The physical fabs are not going anywhere even when Intel goes bankrupt today. I'd much rather see them spin the fabs off with major shareholders being the potential fab users (Apple, Nvidia, AMD, Google, MS, Amazon ...) and let the design team survive on their own.

 

[DrMrLordX]

The physical fabs are not going anywhere even when Intel goes bankrupt today. I'd much rather see them spin the fabs off with major shareholders being the potential fab users (Apple, Nvidia, AMD, Google, MS, Amazon ...) and let the design team survive on their own.

If we're going down that route, I'd like to see their foundry tech cross-licensed to Globalfoundries to give us some redundancy. The DoD would certainly appreciate it.

 

[johnsonwax]

I think government should bail them out. Its a simple measure of national security. The prospect of losing access to top tier fabbing -> NOPE.

The feds would organize a way to catch the fabs like they organized ULA.

 

[Abwx]

Seems that there s some collateral damage with the Intel centric Dell laying off
10% of their workforce.

Must be some chain reaction due to Intel s marketshare in DC tanking progressively, never good to be tied to a single supplier, moreover when he has no more the means to send you some obscure kickbacks...

 

[misuspita]

It's their bed they made... No diversification, now they suffer. Good for them.

 

[vanplayer]

Another lawsuit incoming

https://www.reuters.com/legal/intel-is-sued-by-shareholders-alleging-securities-fraud-2024-08-07/

 

[jpiniero]

Another lawsuit incoming

https://www.reuters.com/legal/intel-is-sued-by-shareholders-alleging-securities-fraud-2024-08-07/

That literally happens every time a stock falls by a big amount.

 

[igor_kavinski]

At what share price do you guys reckon Pat will be forced to resign? Who's next in line?

 

[gdansk]

At what share price do you guys reckon Pat will be forced to resign? Who's next in line?

No one wants to be the next CEO until late 2025 at which time the one year or two year outlook won't be so bleak.

 

[vanplayer]

Intel Postpones Innovation 2024 Event, Cites Poor Finances

https://twitter.com/x/status/1821688281118933000

 

[igor_kavinski]

I hope they limit their executives to economy class flights too, if they are so adamant about reducing costs.

 

[DrMrLordX]

Intel Postpones Innovation 2024 Event, Cites Poor Finances

Wow, that's a bad look. The show may just have been fluff but cutting something as public as that sends the wrong message.

 

[Markfw]

I hope they limit their executives to economy class flights too, if they are so adamant about reducing costs.

They have their own private jets, they are all first class seats ! 20 person jets, not little lear jets.

 

[igor_kavinski]

They have their own private jets, they are all first class seats ! 20 person jets, not little lear jets.

They need to ground them for the time being then and maybe buy a few million economy class air miles from their preferred airlines. If fruit can go, so can first class which is way more burdensome financially. And they should start feeding stray cats and birds. Those animals will pray for them.

 

[Hitman928]

They need to ground them for the time being then and maybe buy a few million economy class air miles from their preferred airlines. If fruit can go, so can first class which is way more burdensome financially. And they should start feeding stray cats and birds. Those animals will pray for them.

They did say they were suspending their air shuttle service between foundries. Not sure if they are doing the same for executive travels though.

 

[igor_kavinski]

Not sure if they are doing the same for executive travels though.

They also need to suspend Pat's pay/bonuses. May sound extreme but when he knows he ain't getting anything without making the right decisions, maybe the latent parts of his brain will suddenly boot right up and start processing properly.

 

[Markfw]

They have their own private jets, they are all first class seats ! 20 person jets, not little lear jets.

Its at the Hillsboro airport and there is a whole hanger they own with like 3 of them. Its been around for a least 20 years, but they jets get bigger.

 

[Hitman928]

Intel has sold its shares of Arm at an estimated value of $147M.

https://finance.yahoo.com/news/intel-pinched-losses-sells-stake-214713024.html

 

[ikjadoon]

Intel has sold its shares of Arm at an estimated value of $147M.

https://finance.yahoo.com/news/intel-pinched-losses-sells-stake-214713024.html

I forgot Intel invested in Arm's IPO.

Though the sale of Arm shares may have provided a windfall, the company still reported a net loss of $120 million on its equity investments in the period.

Ouch. For a company that used to love buybacks and now whose equity value has dropped by 9 figures, that is some bitter irony.

Even more irony: Intel invested in Arm's IPO (when it was $51 / share) → selling in Q2 2024 ($120+ / share): Intel actually made a lot of money (2x in eight months) investing into their ISA competition.

//

I'm no finance person: I remember Arm's "core customers" investing in Arm's IPO: was that just soft influence or hard influence over Arm's future IP, esp. re: foundry? Did Intel cede their influence in Arm by selling their stake "early"?