• Intel CEO Pat Gelsinger is leading the company through a multi-year turnaround, attempting to catch up to TSMC in terms of process and create a customer service organization from scratch.
• Intel’s current financial woes are the result of years of decisions and investments not made, leading to a mismatch between decisions and consequences.
• Intel is still paying a dividend despite its need for cash, likely due to its long history of dividend payments and the need to maintain investor support.
• Intel’s adjusted free cash flow was negative $4 billion, and the company is forecasting a gross margin of 34% for the next quarter.
• Intel is taking an especially large hit from losing market share to rivals, and is eliminating jobs and slowing spending on new plants in an effort to save as much as $10 billion.
Published January 30, 2023
Visit Stratechery to read Ben Thompson’s original post Intel Earnings, Intel’s Plunging Margin, The Dividend Question
