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by bekantan
1423 days ago
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Intel was once known for its memory. Then it became known for its CPUs. I expect that they will pivot at least once more, this time to something which will supersede GPUs for ML workloads. This is, of course, very uncertain which is reflected in the size of my long position |
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They most likely won't be a third time lucky. They had to pivot after their first 10nm delay but their monopoly in server CPU allowed them to keep pumping money despite manufacturing delays. Meanwhile, that gave AMD a chance to catch up which they not only did but outperformed them. One can claim that it's easy to say in hindsight, but that's the hallmark of great leadership which they haven't had since Grove's retirement.
Now Intel have lost that money making division so much so that all the fanfare of regaining manufacturing leadership has been defused with the announcement of reduction of 4bn in capex and still a focus on shareholder dividend. Intel will need some financial engineering and a split of manufacturing and design shouldn't be surprising. And this won't be some smart timely pivot, but a forced split.