News Intel 3Q24 Earnings Results

[igor_kavinski]

Until they dump the fabs the company is just going to continue to lose tons of money.

Maybe they can announce some sort of partnership with TSMC (TSMC gets a backup plan in case of China invasion and Intel gets hardworking competent engineers).

 

[igor_kavinski]

I think this means more bad news incoming. Maybe 18a not onboarding new clients or a delay.

I think the board was not happy that Intel had no competitor ready to challenge Zen 5 till 2026.

 

[Hitman928]

Feels more like rearranging the deck chairs. Until they dump the fabs the company is just going to continue to lose tons of money.

I’ve read that with Intel accepting the CHIPS act money, they have to keep a majority share of IFS as one of the stipulations to get the money.

 

[maddie]

Maybe they can announce some sort of partnership with TSMC (TSMC gets a backup plan in case of China invasion and Intel gets hardworking competent engineers).

There won't be any invasion. That's crazy warmonger fantasy. Blockade, maybe.

Where Taiwan/TSMC has to worry is a BIG, heavy handed push to move production into the USA ASAP.

This apparent bleak outlook from Intel only reinforces the above.

 

[jpiniero]

I’ve read that with Intel accepting the CHIPS act money, they have to keep a majority share of IFS as one of the stipulations to get the money.

Yes but $8B isn't going to do much. They could spin it off and keep majority share while selling the rest.

I think who needs to go is the Board.

 

[KompuKare]

Yes but $8B isn't going to do much. They could spin it off and keep majority share while selling the rest.

I think who needs to go is the Board.

Good luck getting the board to vote for that!

While the board might not be too bright, those turkeys are unlikely to vote for Xmas - even in December.

 

[gdansk]

I heard Pat quit because the board wouldn't approve his preferred names for the split company: Intel Foundry Services and Intelligent Design.

With that joke out of the way I don't expect anything to get better. If he retired the news is likely bad and IFS isn't working and won't survive even with billions of bailouts.

 

[igor_kavinski]

Having to pay TSMC and even then have lacklustre performing products was the double whammy that did Pat in.

 

[Panino Manino]

Gentleman, are we witnessesing history?

 

[Tup3x]

Maybe Pat realised that no matter what he would do things wouldn't improve anytime soon. Must have been really stressful lately for him too.

 

[Hitman928]

Maybe Pat realised that no matter what he would do things wouldn't improve anytime soon. Must have been really stressful lately for him too.

I don’t think this was Pat’s choosing.

 

[adroc_thurston]

Pat has been outed. Can’t say I’m surprised. Stock is up pre market on the news.

Intel Announces Retirement of CEO Pat Gelsinger | Seeking Alpha

seekingalpha.com

 

[Saylick]

Assuming there's something not going as planned with Intel 18A, hence Pat's departure, what are your guys' thoughts on the US government continuing to pour money to keep US chip manufacturing in the US? Intel fabs = too big to fail, or should the government just let it sink?

 

[igor_kavinski]

We need more than that from you. Commentary please!

 

[Saylick]

Maybe Pat realised that no matter what he would do things wouldn't improve anytime soon. Must have been really stressful lately for him too.

Pat will be fine. CEOs rarely, if ever, lose money even if they are sacked.

Pat after hearing the news was probably like:

https://twitter.com/x/status/1863267315556454858

 

[igor_kavinski]

Pat will be fine. CEOs rarely, if ever, lose money even if they are sacked.

Serves him right for not resurrecting Pentium 4 Tejas and his baby Larrabee. One must listen to their heart against all odds and everyone's objections!

 

[Hitman928]

Bloomberg reporting the unsurprising news that Pat was forced to retire (or be fired). Report says the final straw came after a meeting with the board where they asked Pat about his plan to deal with Intel's sinking market share and plan to become a player in the AI market.

Gelsinger forced out at Intel after board lost confidence: report (INTC)

Additional details have to come to light regarding this morning's announcement that Pat Gelsinger had decided to retire as Intel (INTC)'s Chief Executive Officer. Read for more.

seekingalpha.com

 

[coercitiv]

and plan to become a player in the AI market.

my head hurts...

 

[maddie]

Assuming there's something not going as planned with Intel 18A, hence Pat's departure, what are your guys' thoughts on the US government continuing to pour money to keep US chip manufacturing in the US? Intel fabs = too big to fail, or should the government just let it sink?

TSMC will be coming to the US full speed now, and they will not have the option of refusing the invite. This is my prediction.

 

[gdansk]

they asked Pat about his plan to deal with Intel's sinking market share and plan to become a player in the AI market.

I wonder what answer he gave them. It seems like a fake question. There is no good answer. Intel can't do anything to become a player in the AI market without spending a lot of money and time. Yet they have neither and the board knows this.

 

[adroc_thurston]

There is no good answer. Intel can't do anything to become a player in the AI market without spending a lot of money and time

Well, you see, the point is that Intel DID spend a ton of money and time to become a player in ML space.
They've been drowning money and time for that since 2016.

 

[maddie]

Bloomberg reporting the unsurprising news that Pat was forced to retire (or be fired). Report says the final straw came after a meeting with the board where they asked Pat about his plan to deal with Intel's sinking market share and plan to become a player in the AI market.

Gelsinger forced out at Intel after board lost confidence: report (INTC)

Additional details have to come to light regarding this morning's announcement that Pat Gelsinger had decided to retire as Intel (INTC)'s Chief Executive Officer. Read for more.

seekingalpha.com

Well, that's it. Intel of old is dead. The new CEO will have to radically shrink, restructure and delete the old fiefdoms and cliques.

The difference between Intel and the AMD cases, is that AMD accepted their lesser standing in the industry and worked hard to excel on their strengths. Intel, in my opinion, still sees itself as an all around leader and deserving of winning. Every time they fail, its not quite their fault. Their only hope is to be realistic of where they are relative to the industry and to make reasonable plans.

 

[adroc_thurston]

The new CEO will have to radically shrink, restructure and delete the old fiefdoms and cliques.

That would destroy Intel.

 

[Saylick]

TSMC will be coming to the US full speed now, and they will not have the option of refusing the invite. This is my prediction.

It would be Trump vs. TSMC then, but I'm not sure who has more leverage. Without Intel, USA needs TSMC just as much as TSMC needs Big Brother to defend it from China. Trump pretends to be tough, but the guy folds like his cheap suits under pressure and will just issue a Xitter post claiming he won when in fact he lost.

Anyways, didn't want to turn this thread into P&N, so I'll end this side topic here.

 

[gdansk]

If 18A is good enough to get Intel any major external customer it'll put them ahead of Samsung. And I'd consider that a win which should still be attributed to Gelsinger's plan and leadership.