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How innovation died at Intel: America's only leading-edge chip manufacturer faces an uncertain future
Yahoo Finance ^ | 20 Dec, 2024 | Laura Bratton and Yasmin Khorram

Posted on 12/20/2024 5:17:54 PM PST by anthropocene_x

Intel's (INTC) fall from grace seemed to happen all at once. Shares of the once iconic chipmaker plummeted 60% in 2024. The company posted the biggest loss in its 56-year history in its latest quarterly earnings report. Its market cap has dropped 80% since 2000 — when it was one of the most valuable companies in the world.

Company insiders and industry analysts tell Yahoo Finance that Intel's dramatic crash is the result of a slow deterioration spanning more than two decades.

“They had a God complex; they were super arrogant,” a former high-level executive who worked at Intel for more than 20 years told Yahoo Finance. after the dot-com bust, Intel invested in multiple projects that never materialized or failed to reach their potential. Two former executives told Yahoo Finance that innovative efforts were often killed if they didn't immediately contribute to revenue or risked cannibalizing existing products. Six former executives pointed to poor leadership as the source of many problems. They said Gelsinger's predecessors Brian Krzanich (known as “BK”) and Bob Swan prioritized short-term thinking over long-term technology strategies.

Intel acquired Habana Labs to develop another type of AI chip called an ASIC accelerator. But the effort wasn't prioritized due to internal politics, according to an executive who helped oversee the acquisition.“Their focus on Nvidia, who is the real enemy, was simply not there,” the source said. “They were like …crabs fighting amongst themselves.”

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Technical
KEYWORDS: china; chips; h1b; technology
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1 posted on 12/20/2024 5:17:54 PM PST by anthropocene_x
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To: anthropocene_x
prioritized short-term thinking

So much of the world is making this mistake right now. Gotta look at the metrics. Did you make your numbers? This week? This month? Your bonus depends on your performance last quarter.

I don't know, but I suspect that at Elon Musk's many businesses, he has the sense to look at the big picture and engage in long-term planning. Successful people do that.

2 posted on 12/20/2024 5:26:43 PM PST by ClearCase_guy
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To: anthropocene_x

Happens all of the time. They conquer the mountain and then the executives piss it away living large.


3 posted on 12/20/2024 5:29:21 PM PST by wildcard_redneck
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To: ClearCase_guy

One source of “short term thinking” at Intel was save money by large numbers of H1Bs.

https://x.com/USTechWorkers/status/1819136363692020091


4 posted on 12/20/2024 5:32:07 PM PST by Reverend Wright ( Everything touched by progressives, dies !)
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To: anthropocene_x

5 posted on 12/20/2024 5:32:47 PM PST by Libloather (Why do climate change hoax deniers live in mansions on the beach?)
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To: anthropocene_x

Intel is all punjab


6 posted on 12/20/2024 5:33:57 PM PST by sheehan (Vote harder.)
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To: anthropocene_x

The problem isn’t that it fell behind Nvidia, the problem is that it fell behind TSMC and let AMD catch up with it, providing an equivalent product at a cheaper price.


7 posted on 12/20/2024 5:34:37 PM PST by PAR35
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To: anthropocene_x

diversity has consequences


8 posted on 12/20/2024 5:36:03 PM PST by imabadboy99
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To: anthropocene_x

How many Chinese industrial spies have they employ over the decades?


9 posted on 12/20/2024 5:39:25 PM PST by Organic Panic (Democrats. Memories as short as Joe Biden's eyes)
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To: anthropocene_x

“an Intel spokesperson said, “We are executing with rigor on our plan to rebuild product and process leadership and improve our profitability. The work we are doing to strengthen our product portfolio, combined with our disciplined focus on driving returns on our foundry investments, supports our long-term strategy to deliver sustainable financial performance and unlock shareholder value.””

that kind of language right there is an exact indication of the problem: the ascendancy of C-suite buzzword-speak over common sense, nuts and bolts execution ...


10 posted on 12/20/2024 5:41:25 PM PST by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))
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To: Reverend Wright

When the company goes bankrupt we can deport these parasites.


11 posted on 12/20/2024 5:45:12 PM PST by HYPOCRACY (Democracy is dead. Long live the Republic!)
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To: anthropocene_x

In my stock trading career of over 20 years, it has never been wrong to buy INTC.

That may not be the case right now. But I would bet that the longer term investor would be nibbling at INTC and it might take a year or two, but INTC will be back at 30+ And/or one could probably sell 19-struck puts over and over.


12 posted on 12/20/2024 5:45:31 PM PST by Attention Surplus Disorder (The Democrat breadlines will be gluten-free. )
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To: catnipman

Yeah that kind of corporate word salad drives me crazy. You know that was written by committee.


13 posted on 12/20/2024 5:46:17 PM PST by bigdaddy45
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To: anthropocene_x
"temporary co-CEO Michelle Johnston Holthaus" always a REALLY bad sign when they turn a failing multi-billion dollar corporation over to a fat high-school-looking chick:


14 posted on 12/20/2024 5:48:46 PM PST by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))
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To: anthropocene_x
"How innovation died at Intel: America's only leading-edge chip manufacturer faces an uncertain future"

Qualcomm might take exception to that.

15 posted on 12/20/2024 5:49:54 PM PST by DAC21
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To: anthropocene_x

Since it would be better to have this company here and successful, what steps to take to turn their fortunes around and make them again an industry leader and innovator within our own borders?


16 posted on 12/20/2024 6:01:43 PM PST by desertsolitaire ( Lee Harvey Oswald and the Bands final performance)
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To: anthropocene_x
Looks like all US chip manufacturers will probably will not survive. Why? Because our government is dumb. This is just one vid on our chip problems this guy has on his channel. Interesting if you follow the chip business.

.


17 posted on 12/20/2024 6:03:49 PM PST by Karl Spooner
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To: desertsolitaire

FIRE THE BEAN COUNTERS!


18 posted on 12/20/2024 6:06:27 PM PST by null and void (Regarding the second Trump presidency, everyone who isn’t terrified is thankful!)
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To: Attention Surplus Disorder

The article says INTC has lost 80% of it’s market cap in the past 24 years.


19 posted on 12/20/2024 6:08:03 PM PST by Rural_Michigan
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To: anthropocene_x

Intel was one of the first to embrace DEI way before it was called that.
I got pulled into a meeting in 2002 mandating the training.
Outsoucing to India and management infighting was where it all started to go bad.
Things started to go bad when Obama became President.
His first task was to assign an HR person from Obama’s staff to make sure only the right people were employed.

I left in 2015 after 27 years.


20 posted on 12/20/2024 6:23:09 PM PST by Zathras
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