• Intel is cutting management pay across the company to cope with a shaky economy and preserve cash for an ambitious turnaround plan.
• Intel is still committed to offering a competitive dividend, but analysts have speculated that the company may lower its payout to cope with the slowdown.
• Intel is cutting costs tremendously at the expense of their employees, including quarterly pay bonuses, annual bonuses, 401k match, merit-based raises, and a pay cut to all employees’ base salary.
• Intel should suspend the dividend when Pat Gelsinger announced IDM 2.0, but instead he pursued the same path as his predecessors.
• AMD is gaining marketshare in the data center, with sales to North American hyperscalers more than doubling year-over-year.
• AMD is back on top in terms of margin, with Intel’s underutilization of its fabs costing the company four points of margin.
Published February 1, 2023
Visit Stratechery to read Ben Thompson’s original post Intel Pay-Cuts, and Revisiting the Dividend Question; Investor Honesty; AMD’s Earnings
