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[Kadve]

That's close to the entirety of AMD btw....

 

[ricardo_sousa11]

he could make a short profit out of this deal. In 10yrs this stock will not go that high. Whats the % LTCG tax in US?

 

[Elios83]

Intel has lost the plot the moment they lost their crown with manufacturing processes and couldn't compete anymore with TSMC.
The rest is a consequence, including the heaters they're making as CPUs to desperately try to not fall behind with performance.
They're a huge company, they can still turn things around but it will be a long process.

 

[dave_d]

Yeh he'll be down over 20%.

That can be fine if you size the position appropriately (no long term position in an individual stock should take up more than 3-5% of your total portfolio size), but if you go all in that's a tough pill to swallow.

Depends if in 20 years intel ends up being the next Apple or next Sears.(IE it's like trying to figure out what to invest in 2000, Sears or Apple.) That being said, at least one person in that thread on reddit has the good low risk idea. VOO and chill. (Do that, wait 20 years and expect that 700k to be worth about 5 million.)

 

[recursive]

What the hell are they doing over there? And how do you have 19.000 non-essential workers?

Well DEI is one way but even that would be incredible.

 

[proandrad]

Well DEI is one way but even that would be incredible.

Nonessential jobs exist regardless of DEI. DEI isn’t even a bad thing, idiots just blame poor hiring on DEI to feed into culture war. Hiring people unqualified for a position has been happening since businesses existed. But since these unqualified people happen to not be white dudes, now it gets blamed on DEI.

 

[LordOfChaos]

Damn, now I'm actually worried about their GPUs as it's a tiny market with a big R&D spend for them right now. Hopefully they see that it's important silicon and keep going with it and grind it through.

 

[Drew1440]

If its anything like the Twitter layoffs a lot of these would just be a lot of slack jobs. It might help them get back on their feet and release the next Ryzen.
Things could heat up once Nvidia start releasing their own desktop CPUs, I know they had their own ARM cores, but their x86 chips could make an impact if they could get the X86 license

They fucked up the intel modems in the 10th gen iPhone. They would underperform in comparison to the broadcom modems, slower to connect, etc. Apple brought the chip rights off them.

They fucked up CPUs in the PUMA 6 / PUMA 7 cable modems, that results in packets being dropped under any load. Pushed a firmware update that would just migrate the issue. never made a true hardware fix. These modems are still out here fucking up your gaming and VPN connections.

They fucked up the Atom CPUs in some routers that would just crash, required a hardware replacement as it was a hardware fault.

They fucked up 13th / 14th gen CPUs, with the on-going developing issue.

They fucked up the fab rollout plan, over many years. DELAY. DELAY. Intel announced all those processes that were supposed to happen. Currently they best intel can do is like 10nm - 7 nm dies. TSMC is down to 3nm, developing 2nm process.

The CEO sure did give himself a fat raise the the year if i recall.


Intel has been on the decline for like the last decade, its not been a recent problem. If it wasn't for the shady deals, they would realistically have experienced this sooner. Deals such as paying OEMs to only supply intel, Datacenters got discounts on chips for shunning AMD.

Don't forget about Spectre and Meltdown which would now affect the buying decisions for data center operators. Also Microsoft/Google/Qualcomm have been producing their own server ARM processors for a while which have a much less power draw.

It's time for Motorola to get into the CPU market again.

Along with IBM for PowerPC.

 

[The Mad Draklor]

Damn, now I'm actually worried about their GPUs as it's a tiny market with a big R&D spend for them right now. Hopefully they see that it's important silicon and keep going with it and grind it through.

Intel has done a good job with XeSS and I do hope they keep going with their dGPUs.

 

[winjer]

Intel has done a good job with XeSS and I do hope they keep going with their dGPUs.

That is because Intel pouched the engineer that made DLSS, from Nvidia.

 

[StreetsofBeige]

To be fair about the 15,000 let go and non-essential.

It doesn't mean the only people let go were non-essential roles. Its probably a chunk of them I'd guess, but some core jobs might be gone too.

 

[DragonNCM]

Rejoice everyone time of cheep CPU's is back !!!

 

[Magic Carpet]

Rejoice everyone time of cheep CPU's is back !!!

What? Did China build a bunch of Fabs today?

 

[P:axMagellanic]

lmao, that timing.

This is how generational wealth gets wiped out.

 

[billthomas696969]

I used to live in Beaverton. My kid's public school would email us asking for anyone who worked for Nike or Intel to please get them to donate. Both have crushed their headcounts over the last few years, the area has got to be hurting now.

 

[DonkeyPunchJr]

Nonessential jobs exist regardless of DEI. DEI isn’t even a bad thing, idiots just blame poor hiring on DEI to feed into culture war. Hiring people unqualified for a position has been happening since businesses existed. But since these unqualified people happen to not be white dudes, now it gets blamed on DEI.

If you’re factoring DEI into your hiring decisions then for obvious reasons you might not be hiring the best person for the job. And there are some positions or even entire departments dedicated to DEI initiatives that arguably add no value to the company.

Blaming DEI every time some company has mass layoffs is disingenuous. But it’s also disingenuous to pretend like DEI is just some culture war boogeyman. It’s real, and people for years have been pushing this shit soooooo hard, preaching that it leads to stronger teams, happier employees, and ultimately more productivity. And now that it’s starting to backfire, those same people are trying to act like it was all just a figment of your imagination.

 

[Drew1440]

Actually I did some digging around, it seems they had a lot of pointless projects oriented towards DEI, like software that censored gamer words. I'm guessing this sort of stuff wasn't successful and was canned. In terms of hardware I can see them ditching their Atom line of processors, and replacing them with ARM cores instead, I barley see any Atom notebooks/tablets in the market.
Unsure of their GPU division but I hope it sticks around, we need another competitor in the GPU space, unless Qualcomm or IMG/PowerVR get themselves in order.

 

[Zathalus]

I would imagine the bigger problem would be being uncompetitive across the majority of your product stack rather then the DEI boogeyman.

 

[FireFly]

Actually I did some digging around, it seems they had a lot of pointless projects oriented towards DEI, like software that censored gamer words. I'm guessing this sort of stuff wasn't successful and was canned. In terms of hardware I can see them ditching their Atom line of processors, and replacing them with ARM cores instead, I barley see any Atom notebooks/tablets in the market.
Unsure of their GPU division but I hope it sticks around, we need another competitor in the GPU space, unless Qualcomm or IMG/PowerVR get themselves in order.

I thought they already gave up on Atom in 2016.

 

[YCoCg]

Leonidas check in, are you OK?

Leonidas:

 

[Unknown Soldier]

Actually I did some digging around, it seems they had a lot of pointless projects oriented towards DEI, like software that censored gamer words. I'm guessing this sort of stuff wasn't successful and was canned. In terms of hardware I can see them ditching their Atom line of processors, and replacing them with ARM cores instead, I barley see any Atom notebooks/tablets in the market.
Unsure of their GPU division but I hope it sticks around, we need another competitor in the GPU space, unless Qualcomm or IMG/PowerVR get themselves in order.

Intel sold off their ARM division a number of years ago in what will one day be remembered as one of the most short sighted business decisions of all time

 

[GHG]

StereoVsn see what I mean.

This guy is sat there rocking like he's taking a huge constipated dump.

 

[PaintTinJr]

Intel sold off their ARM division a number of years ago in what will one day be remembered as one of the most short sighted business decisions of all time

You could be right, but with the recent IPO of the Raspberry PI foundation - backed by Sony - I could easily see them come in for the PI.

Without a successful Intel ARM product with repeat sales I suspect their own internal department couldn't make the R&D leaps they needed to versus Apple, Qualcomm, etc that would justify the division's costs, whereas the PI foundation as a small ARM division foundation has been pushing low power, small form factor, processing gains and with open standard software development for scalable solutions for over a decade , with only inflationary product price increases across 10 or so different product versions and still demand for newer products as the PI reaches the level of enough general compute to replace most general compute laptop/chromebooks in all household scenarios beyond consoles and desktop PCs.

Intel righting the rest of their ship and then acquiring an ARM division to ramp up in that area might still be a better strategy for them, assuming they don't mess up further and get acquired themselves.

 

[JohnnyFootball]

15,000 peaple?! That is a FUCK TON of people.

Damn that sucks.

Fuck you Intel. They rushed projects, stock prices are horribly dipping and innocent people are forced to pay the price.,

 

[winjer]

https://www.washingtonpost.com/technology/2024/08/01/intel-layoffs-chips/

Intel Is Cutting More Than 15,000 Jobs Despite Getting Billions From the US Government

The chipmaker, which has fallen behind competitors, is slashing 15 percent of its workforce.

www.wired.com

In a move likely to raise a few taxpayer eyebrows, Intel said today that it will cut 15 percent of its workforce, or more than 15,000 jobs, as it struggles to rebound from disappointing results. In March, the US government said it would give Intel no less than $8.5 billion to help it rebuild its US chipmaking operations.

Getting 8.5 Billion in tax payer money, and then proceeds to fire 15.000 workers.
And of course, those who put the company in this situation, take no pay cut and no consequences.

 

[Codeblew]

I used to live in Beaverton. My kid's public school would email us asking for anyone who worked for Nike or Intel to please get them to donate. Both have crushed their headcounts over the last few years, the area has got to be hurting now.

They are hurting more from Portland's shit politics that let druggies and homeless do whatever they want. I used to live there. I jumped ship to Washington when I got tired of almost running over druggies that just jump out in traffic randomly.

 

[winjer]

Intel Targets 35% Cost Reduction in Sales and Marketing Group, Bracing for Tough Times Ahead

Intel's Sales and Marketing Group (SMG) has announced a 35% reduction in costs as the company looks to streamline operations and adapt to challenging market conditions. The cuts, revealed during an all-hands meeting on August 5th, will impact both jobs and marketing expenses within the SMG...

www.techpowerup.com

Intel's Sales and Marketing Group (SMG) has announced a 35% reduction in costs as the company looks to streamline operations and adapt to challenging market conditions. The cuts, revealed during an all-hands meeting on August 5th, will impact both jobs and marketing expenses within the SMG. Intel has directed the group to "simplify programs end-to-end" by the end of the year, a directive that comes on the heels of the company's announcement that it would lay off 15% of its global workforce to save $10 billion in operating expenses. "We are becoming a simpler, leaner, and more agile company that's easier for partners and customers to work with while ensuring we focus our investments on areas where we see the greatest opportunities for innovation and growth," Intel said in a statement to CRN. The company emphasized that this restructuring is about "building a stronger Intel for the future," with partners integral to its plans.

The job cuts within the SMG are expected to target overlapping responsibilities, such as account managers and industry-focused teams, which can confuse customers navigating Intel's complex organization. Additionally, the company plans to significantly reduce its marketing budget and simplify programs, aiming to save at least $100 million in the latter half of 2024 and an additional $300 million in the first half of 2025. The impact will also be felt in Intel's market development fund (MDF), a crucial tool for supporting OEMs and other partners through events, training, and more. An ex-Intel executive warned that the MDF had become vital as the company's product leadership waned, allowing it to maintain valuable relationships with partners. As Intel navigates these changes, its partners are bracing for the impact, with one CEO describing the situation as everyone "hunkering down and just waiting to hear something." Another partner executive expressed concerns about Intel's ability to maintain the level of service and support its customers have come to expect.

That is a huge cut in operations.
And with Intel having $46 billion debt with a $50 billion revenue per year, these cuts are more than necessary.