So they got all that money from Uncle Sam’s CHIPS Act only to lay off 10,000 employees and make themselves “lean”. Govt funded unemployment.
There’s a dude in wallstreetbets who dumped a $700k inheritance into Intel stocks. lol
Layoffs will make the stock go up. It’s bizarre.
Meh, he bought a significant dip, even if it goes lower in the coming months, in a few years he will be way up. It’s not like Intel will go away, they are in a duopoly market.
Intel has been down from around 50 YTD to 30 likely in a few years it will be back to 50 and he will close to double his money
Though he could have probably just put the 700K into S&P 500 and have his retirement taken care of, since he is in his 20s
Yeah but still… could’ve at least waited a day
Holy F, what an idiot nepo baby. Maybe daddy who pays for college works as a VP at intel
Dude, what the heck is wrong with people. Wealth is wasted on the stupid.
its mainly that our modern culture worships money and things whoever has more of it is inherently better.
So rich people make bad decisions because they think that being rich means they are always right, and that their ideas are special and magical and come from a mystical realm of refined thought only people with stacks of cash possess.
And when they fail, they blame everything except their greed focused short sightedness.
What’s the problem? They put the money back into circulation. That’s a good thing, no?
The problem is that it is just poor money management. He could’ve been set for life. Put that into an index or S&P500 and get 10% every year. That’s 70k and he wouldn’t even have to work. If you took that 70k and invested back into the fund, you can double your money in about 7 years, assuming 10% returns.
Yeah I agree. That’s what I would’ve done. You saying that wealth is wasted just made it sound like the money dissapeared somehow. He wasted his chance on financial independence, sure, but that’s not away from the rest of us.
The wealthy hoard their gold. They don’t circulate it.
Layoffs usually cause the stock prices to increase because it shows the company is being “lean” and “cutting the fat”.
Yeah, Intel is down 33% over the last two days… didn’t work this time…
Some layoffs can be seen as “improving efficiency”. This deep of cut is “oh shit, things are screwed”.
It has me oddly hopeful. It sounds like they may have finally realized that they can’t ignore their core product/purpose. However, whether it’s too late or if they have the ability to actually execute is still to be seen.
Frankly, no idea. They talked the talk, but it’s vague enough that I wouldn’t be surprised if they cut out some important people and kept a lot of the bogus crap.
Speaking from a company that has seen (less dramatic) rhetoric around similar circumstances, and everyone on the ground who understood nuance would have guessed certain projects to get canned. Then it turns out they treated the money losing projects as the sacred cows and cut the profitable projects to the bone and put them at risk rather than give up the losers.
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The stock is down 30% so far, so I think you may not understand investors very well haha
After all this time, AMD finally won. They made a hell of a comeback too. GG guys.
I wonder how many of the over 1000 VPs will get canned. You read that right. I worked there at the beginning of my career. I know a lot of people who are now VPs. Only one of them was actually any good. One guy couldn’t even manage his own staff meetings when he was a first line manager. Nice guy, not dumb or anything, but not brilliant, and a terrible organizer.
Ah yes, the ol’ “promoted to the level of their incompetence”. SOP. Or SNAFU, take your pick.
So the semiconductor jobs and manufacturing isn’t coming back to the US?
Who else saw this coming? Because I did.
I remember telling people that and they wouldn’t believe it. Time has a way of making the unknown known.
Read article
I read it and predicted this outcome in 2022. If Intel wanted to open factories and employ people in the US it would have done so without the CHIPS Act.
No company will say no to free taxpayers’ money, so they didn’t. But they spent it on stock buybacks and now they’re laying off thousands of workers and are selling a defective product.
Now here’s an article for you to read that may be unpalatable https://globalsouth.co/2023/07/10/michael-hudson-why-the-u-s-economy-cannot-re-industrialize/
Fair criticisms, but the statement from CEO is that the layoffs are to offset fab investments, so there isn’t any clear reason to conclude that Intel’s US chip manufacturing is dead based on this. We won’t be able to infer anything of that sort until we see what areas they actually cut.
Future promises vs present actions. Only time will tell.
This sort of thing is increasingly making TSMC a monopoly as a fab. Due to the extreme economies of scale, fabbing looks like something that is hard to do well under the capitalist model. Perhaps a good time for some of the larger nations of the world to start publicly owned fabs (that publish their research instead of hoarding it) instead of ending up with the whole world reliant on one company that will eventually be able to name its price.
So they’re only keeping marketing?
I just sat through a “town hall” at a former GSK now Haleon site and a site director assured people that volume was coming back through nothing but the power of marketing alone. Apparently 8 dollar tubes of toothpaste are non sellers in a tight market. Who knew.
Prepping for all those spicy class action lawsuits coming their way.
I’m rather OOTL with intel. Mind giving me a short summary? What’d they do this time?
A bug or whatever in their 13’th and 14’th gen CPU’s makes them slowly but permanently degrade and cause crashes. Intel have not been handling the issue as you would hope since the discovery. Denying, downplaying, refusing a recall, refusing extended warranties, the lot. Now the lawsuits are cooking.
Ooo spicy… I’ll have to keep an eye on that.
Thanks!
IIRC they sold and shipped 2 generations of CPUs that were essentially defective and unrepairable.
They sold fairy high end processors. They took like 3 months to fix the issue. Processors that were damaged will remain damaged. I think Intel will replace them though.
This saga has moved fast so I don’t blame you, just an FYI Intel has issued a statement saying the microcode update “will” fix all affected CPUs (it won’t, because the damage is physical) and will not be issuing a recall.
We are witnessing one of the more obvious end-game states of capitalism. Intel continues to state they don’t give a single shit about this issue, and will not do anything about it.
The corporate nihilism will continue until the collapse. More and more companies will act like this because why does anything matter when we can profit more today?
What’s the alternative to Intel for a home PC? After getting caught up on this, I won’t be ever buying one again.
AMD
AMD. Maybe Qualcomm in the near future. AMD Ryzen chips are pretty damn good.
Oh man I would love a Snapdragon 8 Gen3 USFF or STB.
I want an arm laptop for work. I almost always use web apps or SSH or RDP. I don’t need or want a lot of power in my laptop, but fanless and big battery life sounds great.
Good to know. Probably have another four years on my PC before it heads out to pasture.
Not sure a short summary will cut it.
They had no competition for a long period and ended up with an accountant CEO that caused their R&D to stagnate massively. They had a ton of struggling and failing to deliver all in most areas, and they wombled about releasing CPU generations with ~4% performance uplifts, probably saving a few bucks in the process.
AMD turned back up again with Ryzen and Epyc models that were pretty good and and an impressive pace of improvement ( like ~14% generational uplifts ) that caused them such a fright that they figured out they had to ditch the accountant.
Pat Gelsinger was asked to step up as CEO and fix that mess. They axed some obvious defective folks in their structure and rushed about to release 12th generation products with decent gains by cranking the power levels of the CPUs to absurd levels, this was risky and it kind of looks like they are being bit with it now.
Server CPU sales are way down because they are just plain uncompetitive. They have missed out on the chunk of money they could have got from the AI bubble because they never had a good GPU architecture they could leverage over to use. They have been shutting down unprofitable and troublesome divisions like the Optane storage and NUC divisions to try and save money, but they are in a bad way.
The class actions mentioned elsewhere in the thread are probably coming because the rush to make incremental improvements to 13th generation and 14th generation CPU’s resulted in issues with power levels and other problems that seem to be causing those CPU’s to crash and sometimes fail altogether.
A case study for the generations
There’s no corporate death penalty, but there is corporate death from alcoholism, coke overdose and syphilis.
I mean, you do a TRAFU and instead of firing those logically responsible for it you fire your actual troops.
This basically means they failed to find scapegoats inside the company who wouldn’t be management themselves.
Wow.
What the actual fuck
The money needs to return to the government. Some wealthy fucks are lining their pockets.
It’s a good thing we gave them BILLIONS of Taxpayer Dollars! Otherwise they would have Laid Off Employees! Anyways we don’t have enough money in the Budget to Feed Starving American Children!
I feel like they have the farm bet on Falcon Shores and (to a lesser extend) the Xe line now, and of course the foundry.
It’d be great if the bad rumors and delays would stop… yeah…
Seems like a great time to buy AMD, ARM and QUAL
Only if you have conviction. Buying tech in the face of recession fears is one thing, but buying tech that supplies hardware to tech is another. It’ll probably sound like a whip cracking if the AI frenzy ever collapses hard
ARM and Qualcomm aren’t really involved with AI, and AI only makes up 15-20% of AMD’s revenue. Nvidia the one to watch out for, an entire 85% of their revenue is just AI and Mellanox. The Nvidia pump has been insane.
The elephant in the room is the semiconductor ETF trade. People are actively trading ETFs more than actual tickers (SOXL is routinely one of the highest volume tickers day in and day out, and it’s been like this for a couple years now). Used to be that NVDA and AMD correlated with crypto because people would flip them on that basis, but not really the case anymore due to all that but I digress - if NVDA tanks, it’s really overweight in all these ETFs, ETFs tank, managers dump every holding in the ETF, and a bunch of non-AI semi stocks will wind up getting walloped about as hard
That’s true, Nvidia’s fall will probably crash the whole market. SOXL tickers don’t trade in unison though, see how much Intel fell in the premarket without affecting other stocks. Of course, Intel is a tenth of the size of Nvidia.
Yeah, the tail could definitely wag the dog. NVDA is now in the top 3 holdings of both SPY and QQQ, so if something like 2 Metas or 1 Microsoft started paring back and skipped on a product cycle, Nvidia’s forward metrics would suddenly be garbage, and between those couple companies, suddenly >15% of market is tanking and dragging entire sectors along for a wild ride
This is an admisson of no future.
They’re throwing crew out of their boat full of holes to assure investors they’re ship shape!
Their corpse will be long since picked clean of their patents, assets, and trademarks by 2030.
In January 2022, Intel announced an initial $20 billion investment that will generate 3,000 jobs,
Not sure why Biden didn’t put any terms and conditions on giving away all this money 💰?
The string is that they use it for the creation of a domestic chip plant, not salaries for existing employees.
The U.S. should sue the shit out of them.
It seems you are confusing US for EU
These corps are slimy Fucks. It probably did create 3k jobs. Low paying, temporary jobs. These layoffs are probably other jobs
