Intel Faces Shareholder Lawsuit Amid Financial Turmoil and Layoffs, Company Misled Investors

[bonehead123]

such a shame I was a broke teenager when $AMD was $1.40

Well, I was somewhat older during that time with some disposable income, and thankfully, had the foresight to buy a large chunk of their stock back then

 

[Wirko]

intel will soon be looking for a gov't bail out

CHIPS++ Act

 

[mtosev]

Intel has found itself in deep shit. Sad to see.

 

[Vayra86]

At least their E core was very innovative without much legacy, weak at the beginning, but now it seems to be improving fast. I almost expect them to merge the P-minus-HT and E core designs into one superior design in the next couple years... well, if they have enough good engineers (and managers!) left in the stable.

Even with their innovatively copied big little approach they still have a gross TDP and havent avoided the inevitable failing CPU range. It hasnt changed a single thing for them other than being able to drag along their archaic architecture just a bit longer.

 

[freeagent]

From swindling their customers to swindling shareholders.. wow. Big business can sure be ugly.

 

[Solaris17]

While the cancelation of events is sad, it is necessary to get financials back on track,

Why? How? That’s corp fluff right there. Like how much money were you spending that cancelling helps you as a multi billion dollar corporation? Crazy.

 

[Philaphlous]

Now I'm 2nd guessing my investment in them earlier this week...buy the dip... Seems like Intel's DIP is still far away from over....

 

[Punkenjoy]

What we see is probably just the humane nature. Intel internal culture changed when they had a decade to milk the market. They were more arrogant, less agressive. There is also reports that Intel chip design division had a shitty attitude and got their ass saved by the fact that for many years, Intel was the leading fab. This saved their ass during the P4 era. With the best fabs and the best arch (Core 2) they just oblitared AMD.

But now, the leading in fabs is TSMC and Intel struggle to catch up. The fab division can no longer save the ass of the uArch division.

They will need to suffer way more before it get better.

As for AMD with Zen 5, i think it meet their goals. Its just desktop users werent part of it. The new uArch seems to have really good performance in scientific and datacenter workload and the power efficiency will be killer on desktop.

And i think that AMD is smart to go this way. The threat for them is no longer Intel. Its all the other ARM vendor that are efficient and could grab market share from them. It just suck for us.

 

[AnotherReader]

Doesn't check out, Intel has one of the highest CapEx rates in the industry, since it's one of the only semiconductor companies that own and develop fabs

Dividends are good, but I detest share buybacks. They were illegal until 1982. In 2018, Intel spent $10.7 billion on share buybacks. That's around the time when they knew 10 nm, now known as Intel 7, was a dumpster fire. Spending a large portion of that money on R&D would have been wiser.

For the full year, the company generated a record $29.4 billion cash from operations, paid dividends of $5.5 billion and used $10.7 billion to repurchase 217 million shares of stock.

 

[ThomasK]

"the cancelation of events is sad, it is necessary to get financials back on track, and product launches should continue as usual"

Poor c-level decisions is the reason Intel is bleeding money. I don't see how cancelling an event would make much of a difference.

 

[AleksandarK]

Why? How? That’s corp fluff right there. Like how much money were you spending that cancelling helps you as a multi billion dollar corporation? Crazy.

Hosting an event costs significant funds, the company is trying to cut costs everywhere. That is the way I see it

 

[Solaris17]

Hosting an event costs significant funds, the company is trying to cut costs everywhere. That is the way I see it

I don’t. Significant maybe to me or you. The point I am making is they seem to be way over spending. PAX, CES, COMPUTEX. Sure crazy. But other various expos and conventions have no problems with there limited budges renting out the LA convention center, or Orlando. Especially given intel…..makes the products they will be displaying so it’s not like it will cost a significant amount in parts.

Im not saying the LA convention center can host all of the people that would otherwise attend Intel’s summits. (Though given what iv seen I’m willing to bet it could) I’m just saying there is definitely poor financial planning involved if hosting a public event even has the chance to topple your company.

 

[AnotherReader]

I don’t. Significant maybe to me or you. The point I am making is they seem to be way over spending. PAX, CES, COMPUTEX. Sure crazy. But other various expos and conventions have no problems with there limited budges renting out the LA convention center, or Orlando. Especially given intel…..makes the products they will be displaying so it’s not like it will cost a significant amount in parts.

Im not saying the LA convention center can host all of the people that would otherwise attend Intel’s summits. (Though given what iv seen I’m willing to bet it could) I’m just saying there is definitely poor financial planning involved if hosting a public event even has the chance to topple your company.

Don't forget optics. After all, they canceled dividends as well.

 

[cvaldes]

Why? How? That’s corp fluff right there. Like how much money were you spending that cancelling helps you as a multi billion dollar corporation? Crazy.

Clearly you have never worked for a Fortune 500 technology corporation.

It's not just the savings in convention center fees, booth rentals, merchandise (logoed t-shirt) orders. Many tradeshows -- especially developer focused ones -- require a significant commitment in employee resources, particularly engineers for developer events.

Remember that budget & headcount cuts are typically assigned to divisions, so each division management has to decide who/what to cut. In some cases, it's not feasible to simply downscale an event and turn a developer conference into a meet-and-greet at a local craft brewery.

In the case of a cancelled corporate event like a tradeshow, there are some real savings. Maybe there are some deposits or up-front fees that can't be recouped but certainly you can save a bunch of money by not putting people in airplanes and hotel rooms. That $30 rideshare from the hotel to and from the restaurant is going to be expensed back to the company as well as the meal itself. What is the true cost of 5 days of travel, room & board AND a week of lost productivity from a senior engineer?

Again, all of this is crystal clear to anyone who has worked a corporate job at a Fortune 500 company.

The shareholder lawsuit was automatic. Anyone with ten neurons could have predicted it the moment Intel released their earnings statement.

 

[bruhmoment01]

So let me get this straight. “The Construction Laborers Pension Trust” found out the hard way that stonks don’t always go up, and is now playing dumb pretending not to know what a forward-looking statement is?

Classy.

 

[cvaldes]

So let me get this straight. “The Construction Laborers Pension Trust” found out the hard way that stonks don’t always go up, and is now playing dumb pretending not to know what a forward-looking statement is?

Classy.

Nah, not just "The Construction Laborers Pension Trust." Most investors considering the massive loss of equity.

Don't you worry. There will be more shareholder lawsuits, not just this particular trust adminstrator.

The issue isn't whether or not stocks go up or down. It's whether or not Intel properly disclosed its challenges. Missing your revenue targets by a couple hundred basis points is disappointing but still within the realm of reason.

The massive miss is the problem. The point is that Intel probably had lots of warning about a massive revenue miss and they didn't communicate it to the investors (both actual and potential) in a timely manner.

 

[Vya Domus]

Now I'm 2nd guessing my investment in them earlier this week...buy the dip... Seems like Intel's DIP is still far away from over....

The thing is there are very few cases where companies which were once in the position of Intel who basically had a monopoly over many computing segments will ever return to those former stats. They can turn the ship around but to that extent ? Doubt it.

 

[cvaldes]

Now I'm 2nd guessing my investment in them earlier this week...buy the dip... Seems like Intel's DIP is still far away from over....

Intel's massive market cap loss was based on piss poor quarterly results and worse, poor guidance for the near term.

Buying on a dip makes sense when there are signals that a turnaround is probable. There is nothing in Intel's statements or general industry sentiment that indicates any sort of near term reversal for Intel.

Buying on Nvidia's dip makes far more sense. They are minting money and their guidance is pretty strong. If you understand Nvidia's business, you'll know that Fortune 500 companies buying AI accelerators don't just send a junior IT staffer to Best Buy to pick up some cards. These projects come out of an annual budget and generally require many months to reach full operational status. It's not like buying a new keyboard and plugging it into your PC.

There is nothing about Intel that says they are going to right the ship anytime soon. The fact that Client Computing is still their biggest business is also another harbinger. This is not a business that grows by leaps and bounds.

By contrast, Nvidia's Datacenter business, a couple of years ago was neck-and-neck with their Gaming business. The latter has grown modestly but their Datacenter business exploded, it's now about 5-6x larger than Gaming.

Moreover, there are plenty of other signs that are probably reasonable predictors of Nvidia's short term prospects. TSMC has indicated strong July shipments. There are other chip technology firms (packaging for one) that have announced exceptional revenue and indicated strong guidance. Nvidia's products aren't just a die from a wafer, there's a lot of other stuff around it. And when partners like SuperMicro also offer strong guidance, that's another data point.

Investors need to look at the big picture if they want better performance from their portfolio.

 

[thesmokingman]

Now I'm 2nd guessing my investment in them earlier this week...buy the dip... Seems like Intel's DIP is still far away from over....

Dude, this isn't a dip man.

 

[Solaris17]

Clearly you have never worked for a Fortune 500 technology corporation.

Sure I have don’t talk about things you don’t understand. You also know the funds put aside for this are in different accounts. We aren’t removing budgets from R&D to make sure guests have lollipops. Like wise reoccurring venue reservations incur heavy discounts from everything from culinary and otherwise. Which again isn’t dipping into the budget to allocate conveyer space with TSMC or quanta.

I agree with bta’s take https://www.techpowerup.com/forums/...ord-on-arrow-lake-launch.325413/#post-5306391

That it would likely be inappropriate to host something like that given the pressure they are under.

If a corporation as big as Intel actually needed to cancel a public showcase to attempt to save its company then the financials are even worse then they are publicly showing. It would already be too late.

 

[Hxx]

Intel has found itself in deep shit. Sad to see.

Nothing to be sad about . I’d be sad if they got hit by an unforeseen event like a storm or earthquake distryoing their labs but this crap? Nah this was all known done on purpose and C Suite still got payed . Nothing to be sorry for . They’ll be just fine and I’m sure they’ll do it again

 

[DeathtoGnomes]

Personally, I'd like Intels stock to drop into the single digits the same way intel drove AMD down there, kicking them all the way.

speculation: This temporary rise in stock price bears an ill omen, that the stock will plummet further after this minuscule rise within a month.

 

[thesmokingman]

speculation: This temporary rise in stock price bears an ill omen, that the stock will plummet further after this minuscule rise within a month.

dead cat bounce aka suckers rally, well not quit a rally lol

 

[Caring1]

Personally, I'd like Intels stock to drop into the single digits the same way intel drove AMD down there, kicking them all the way.

speculation: This temporary rise in stock price bears an ill omen, that the stock will plummet further after this minuscule rise within a month.

The real drop will come once the full cost of this is known.

 

[TumbleGeorge]

All right. Intel did not force shareholders to buy their shares. The free market is a risk that shareholders take on themselves. Why should Intel be held responsible for the unreasonable buying and selling of shareholders?