Wednesday, May 31, 2023

INTC -- Feature Story In WSJ Today -- May 31, 2023

Locator: 44804INV.

Link here.

Unfortunately behind a paywall. My hunch: this article will show up later this week as a reprint elsewhere ... with no paywall. Hopefully. 

Huge CAPEX at a time the Fed is raising rates. 

This is the fifth or sixth paragraph but is probably the essence of the article:

Gelsinger’s plan is to invest as much as hundreds of billions of dollars into new factories that would make semiconductors for other companies alongside Intel’s own chips. Two years in, that contract-manufacturing operation, called a “foundry” business, is bogged down with problems.

"Hundreds of billions of dollars." 

Does "hundreds of billions" trend toward a trillion? 

The following have huge moats: TSM, NVDA, AVGO, QCOM, AAPL, AMD, ASML. Good luck.

2 comments:

  1. Back in the day, I made a lot of money with INTC. They were the absolute and undisputed semi-conductor leader---very innovative and always leading the market. Hence their stock performance, often doubling in an 18-month period. To see it being a laggard today is just sad, for such a proud, flagship company. I hope they make it back to the top, but not sure I'd put a lot of money on it.

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    1. Agree, 1000%. I was very late to investing in semiconductor companies; didn't know much about them until recently. Now, things are figuratively and literally moving at the speed of light. How fast things change.

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