I'm not a fan of Jim Cramer or CNBC, but when I saw that Cramer was talking about companies that need a management shake-up, I had to see if Intel was on the list. I was not disappointed.
Cramer bashes Intel
- Thread starter blueone
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siliconbruh999
Active member
I like bashing at Intel but after that we have Boeing which is hilarious he said if we had 5 companies that makes the aircraft Boeing would have been done for but we only have 2 same is for Intel only 3 manufacturers of Leading Edge
I really don't like bashing Intel per se, but Cramer's remarks about the CEO and the BoD mirror my views - they're not doing a great job, but they think they're doing a great job. Note that I said a management shake-up. I've worked with many brilliant people at Intel, but a management shake-up is what's necessary. While I hate to say it, when I saw Intel's employee count stretch beyond 120K, I just knew a painful reduction was on the horizon. Unfortunately, I still see a lot of the same worse-than-useless VPs on board. You know the type... they're excited about being excited, and they're too excited about themselves. I also remember seeing a photo on LinkedIn of the room full of about 100 people at this year's Fellows conference, posted by the Intel CTO. (The most junior fellows are in the same pay grade as VPs.) My thought was that the room was not worth the ~$200M or so per year it was probably costing shareholders.I like bashing at Intel but after that we have Boeing which is hilarious he said if we had 5 companies that makes the aircraft Boeing would have been done for but we only have 2 same is for Intel only 3 manufacturers of Leading Edge
Usually when Cramer is against something, it’s does really well in the short-term
.In this case though I think the inverse-Cramer rule (meme) has been broken.
Isnt the cost to those working for Intel where that 200M could have been spent elsewhere.
Isnt the quest for "Shareholder Value" that has sunk Intel in the 1st place.
Big companies tend to become top heavy as they age. Very senior people also typically have a fully burdened cost significantly higher than their compensation. It's worth noting that a couple of friends of mine who read that post told me they think my estimate is far too high. Perhaps, but I think they aren't counting administrative support, travel budgets, and even things like invention disclosures and patents their names are on, which result in additional payouts. The fellows conference used to be in Sedona... I wonder if it was this year? As for spending it elsewhere, whatever the sum is, I think Intel spends too much on senior headcount, so, no, I think they should just slim down.
No, IMO that's an Intel strength, that just hasn't been realized recently.
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I just listened to it. Arm holding was one of Intel's best assets? Seriously? Good advice for Brookfield and Apollo!
Learn the business!!!!! This is entertainment with a bit of truth mixed in, my opinion. He throws a lot against the wall and some things stick, which will be remembered. The non stick stuff will be forgotten. My opinion.
Yeah, the Arm investment was a rounding error on Intel's balance sheet too.I just listened to it. Arm holding was one of Intel's best assets? Seriously? Good advice for Brookfield and Apollo!
This is entertainment with a bit of truth mixed in, my opinion. He throws a lot against the wall and some things stick, which will be remembered. The non stick stuff will be forgotten. My opinion.
I think you know my feelings on the popular financial press and semiconductor industry analysis, because I've made derogatory posts about my lack of enthusiasm numerous times on this forum. It is very difficult to get knowledgable and unbiased analysis about semiconductors, even from analysts who claim to be deep experts. But calling out Intel's CEO and BoD for their lack of coherent leadership I thought was an interesting overlap between someone who I think knows little about the semi industry and my own thoughts.
While I have never been on a BoD I know people who are and I am told there are active and passive boards. Intel I would say is passive. It seems that some boards are more focussed on diversity than actual knowledge and talent.
Board and Governance
www.intc.com
I was encouraged when Intel added Lip-Bu Tan (9/22) to the board but I am not impressed with what has happened since.
MKWVentures
Moderator
Remember who was added to the board back in March. It may become important soonWhile I have never been on a BoD I know people who are and I am told there are active and passive boards. Intel I would say is passive. It seems that some boards are more focussed on diversity than actual knowledge and talent.
Board and Governance
I was encouraged when Intel added Lip-Bu Tan (9/22) to the board but I am not impressed with what has happened since.
How so? A memory guy? Is he going to take over for Pat? Do you really think it is wise to bring back a bunch of ex-Intel people?
Pat said he was all-in on 18A. It looks like 18A missed whale season so now Pat is all-in on 14A and HNA-EUV?
It isn't, IMO. The world is so different now that their past experience is likely detrimental. Especially a finance guy who was responsible for manufacturing during his time at Intel. I never understood how that worked.
Unless IFS earns a track record with some significant customers in the next couple of years, they look like they could miss whale season for 14A too.
MKWVentures
Moderator
Stacy was brought in for a reason. When a Client asked "what does this mean for Pat?" my answer was "nothing good" .
Stacy knows how to run the company, knows how the accounting is done at Intel and other companies, and is closer to me (and Bob Swan) than Pat on the optimism Scale. He provides "another view" and "options".
Stacy knows how to run the company, knows how the accounting is done at Intel and other companies, and is closer to me (and Bob Swan) than Pat on the optimism Scale. He provides "another view" and "options".
What has changed since his arrival on the board? Pat is still Pat and the fact that Q2 numbers were a "surprise" to the Intel executive staff? Something is going to have to change.
MKWVentures
Moderator
I think the recent cutback was a major change. Along with Org changes. I think when we see the process ramp/Fab ramp plans it will be a major change.
And if 18A doesnt ramp in 2025/6, then maybe "IDM2.0 dream" comes to an end (My "IBM2.0" scenario takes over).
Lets see what happens by end of the year. Something is going to change. But the only really acceptable answer is 1 Fab worth of external foundry in 2026. We are nowhere close to that according to Intel's optimistic comments.
Intel Plans 35 Percent Cut In Costs For Sales And Marketing Group
Intel’s Sales and Marketing Group plans to cut jobs and ‘simplify programs’ as part of a directive to slash costs by 35 percent by the end of the year, CRN has learned.
www.crn.com
Finally!Intel Plans 35 Percent Cut In Costs For Sales And Marketing Group
Intel’s Sales and Marketing Group plans to cut jobs and ‘simplify programs’ as part of a directive to slash costs by 35 percent by the end of the year, CRN has learned.
siliconbruh999
Active member
Finally they are cutting the department that is the least important
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I don't see how you can ramp a process without customers. Manufacturing internal chiplets is good but it does not qualify as a foundry ramp. TSMC is big on yield learning which really is customer learning and TSMC has all of the customers to learn from. How can Intel or Samsung catch up to that? My optimism for competitive leading edge foundry options has never been lower.