[foft]

To do a fab build out and restructuring of this scale clearly they need to spend a lot of money. In that context the numbers from the financial report do not seem that shocking. This all seems to be quite an overreaction in the market. They still have a lot of revenue. They are still dominant in terms of market share. Their CPU products are competitive and reliable despite the process disadvantage. Yes there are issues some percentage of the consumer CPU high end but I'm sure the investigation will be completed and the right thing will be done, they cannot afford the reputational risk of not doing so.

I'm more concerned about how well 18a and beyond is coming on. Also how well is the sales side and client support for this going? I was thinking they were working more with TSMC to learn how this works from a client perspective so they can build something similar.

Regarding AI. Technically speaking isn't the AI hardware largely cut and paste? A much simpler CPU of which there are a few thousand copies. With the expertise they have in RTL design it does not seem that difficult.

That said I do not think that parallel compute of this nature is going to be future of AI, it is too expensive in terms of power. I'm sure a much more efficient structure will be designed in the coming years, e.g. neuromorphic.

[shaism]

I am not sure. While Intel still has a dominant market share in personal compute, it’s data center market share has been shrinking for years and Intel doesn’t have a convincing story why that would change.

The main issue I see for Intel is that they are trying to catch up in multiple areas at the same time against more specialized companies with more resources, and fend of new architectures like ARM.

Look at the segments:

- Foundry: TSMC is way ahead, has the right culture and is better capitalized. Even Samsung is ahead.

- CPU Architecture: Compete with AMD on the x86 side and with Apple, Google and the likes with ARM architectures.

- GPU: Compete against NVIDIA and AMD.

- AI/NPU: Compete with NVIDIA, AMD, Qualcomm,…

All those companies were smaller than Intel in the past, and Intel couldn’t keep their advantage. Now, those companies are ahead and in a better overall position.

Nothing is impossible but I can certainly see why investors are skeptical, especially given Intel‘s track record in the past few years.

[UncleOxidant]

> This all seems to be quite an overreaction in the market.

This is the problem with our current brand of capitalism. It's only able to look ahead a quarter or two. Some things (like semiconductor fabs) require a huge amount of spending and the payoff doesn't come for about 5 years. And things like fabs are very necessary to keep our economy rolling. Meanwhile the markets want a quick fix and easy payoffs.