fansink
Active member
Capital is king
Intel at one point saw cash flow of $10 billion (or more) per year. By 2022, though, that had turned negative, and it has only gotten worse over the past two years. That downward spiral of cash flow has hamstrung the company’s ability to fund its core operations.
Know when to pivot
Changing course can be humbling. It signals to both investors and employees that you made a mistake. But failing to do so can be fatal. Intel is making some money from its existing businesses, but not enough to support the capital outlay needed to expand its manufacturing and supply chain. The company’s failure to enact a new plan earlier likely cost it billions.
Staying ahead of the curve is hard, but catching up is a lot harder
Intel CEO Pat Gelsinger is under the microscope these days, but virtually no one blames him for all of the company’s current problems. He joined Intel in 2021, hoping to get the company back on track after previous management’s missteps. Getting Intel back to a level of prominence is taking longer and costing a lot more than expected, however—and R&D costs are just going to climb higher as it plays catch-up.
Once lost, investor confidence is almost impossible to regain
Intel’s problems have cascaded in the past several quarters, but the warning signs have been there for a while, and investors have seen them. Over the past five years, shares are down 63%. Over the past year, they have fallen 50% and year-to-date, the company’s stock is down nearly 60%
When under a microscope, don’t tout a product until you’re positive it’s ready
One of Intel’s hopes for the future has been turning the company into a fabless design studio, which it hoped would lure away business from Taiwan’s TSMC. Those efforts hit a roadblock earlier this month, though, after chip designer Broadcom tested Intel’s process and said Intel was not yet ready for large-scale production.
Intel at one point saw cash flow of $10 billion (or more) per year. By 2022, though, that had turned negative, and it has only gotten worse over the past two years. That downward spiral of cash flow has hamstrung the company’s ability to fund its core operations.
Know when to pivot
Changing course can be humbling. It signals to both investors and employees that you made a mistake. But failing to do so can be fatal. Intel is making some money from its existing businesses, but not enough to support the capital outlay needed to expand its manufacturing and supply chain. The company’s failure to enact a new plan earlier likely cost it billions.
Staying ahead of the curve is hard, but catching up is a lot harder
Intel CEO Pat Gelsinger is under the microscope these days, but virtually no one blames him for all of the company’s current problems. He joined Intel in 2021, hoping to get the company back on track after previous management’s missteps. Getting Intel back to a level of prominence is taking longer and costing a lot more than expected, however—and R&D costs are just going to climb higher as it plays catch-up.
Once lost, investor confidence is almost impossible to regain
Intel’s problems have cascaded in the past several quarters, but the warning signs have been there for a while, and investors have seen them. Over the past five years, shares are down 63%. Over the past year, they have fallen 50% and year-to-date, the company’s stock is down nearly 60%
When under a microscope, don’t tout a product until you’re positive it’s ready
One of Intel’s hopes for the future has been turning the company into a fabless design studio, which it hoped would lure away business from Taiwan’s TSMC. Those efforts hit a roadblock earlier this month, though, after chip designer Broadcom tested Intel’s process and said Intel was not yet ready for large-scale production.
