Intel is reducing server chip pricing in attempt to stem the AMD tide
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Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#2This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#3This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
Is this not just the efficient-market at work? Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices.
And for future investment Intel still has ~ $24 billion cash on hand as of June 2021 [0]
[0] https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on...
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#4This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
This move is to attract AMD customers back to Intel, so while in the short term it could hurt revenue, longer term it may mean increased profits and therefore offer more room to invest. There's also the potential for increased sales at the lower pricing, which will still have a profit attached. So I doubt that overall this will have much impact on investment.
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#5This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
I don't think money is the problem with Intel's troubles.
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#6This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
A lack of capital is hardly the reason for Intel falling behind TSMC. If it were, they wouldn't have lost their lead in the first place, and TSMC wouldn't have been able to overtake them.
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#7This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
Is this not just the efficient-market at work? Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. And for future investment Intel still has ~ $24 billion cash on hand as of June 2021 [0] [0] https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on...
> Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices.
Shouldn't you replace AMD with TSMC in that sentence, unless you meant design instead of chips? AMD doesn't manufacture chips.
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#8This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
Intel has $24.8 billion in cash.
https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on...
Intel dropping their prices and thus revenue temporarily should not affect their ability to compete at all. They're not THAT badly mismanaged to the point they're out of cash.
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#9This will make it harder for them to invest in production technology, which will make it harder for them to catch up to TSMC. It might be the only move they can make, but that doesn't make it a great one.
Is this not just the efficient-market at work? Simplistically: Intel's chips aren't as good as AMDs so it has to drop prices. And for future investment Intel still has ~ $24 billion cash on hand as of June 2021 [0] [0] https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on...
TSMC are spending about that every year for the next 3 years on production improvements. Chip fabrication is so expensive to develop, I'm concern that $24bn is nowhere near enough to build a 5nm process.
Re: Intel is reducing server chip pricing in attempt to stem the AMD tide
#10Isn't this always their strategy? But now they just hand out the discount code more easily to everyone.