Intel

“And I believe that Intel still hasn't gotten paid for anything from the Chips Act.”

“We've seen this game before with Intel saying, oh, that doesn't matter. Like just get the most performance possible. You can water cool things, all kinds of things. That, that tends to not be the winning strategy over the long term, and so we do think that the…”

“So there's a real national security element here, and it's just, it's a really tough situation, because Intel is a failed company at this point, and they're, and the reason the failure is so total is because The aspects that drive their failure are the same th…”

“Intel will have to be aggressive on pricing if they want to compete because they are not competitive on the actual cost of the wafer, and so they would need lower margins if they want to compete”

“Intel now expects to have 75,000 employees at year end, down from 116,500 in June of 2024.”

“Now, the problem is that Intel is still more expensive than TSMC on a normalized per wafer basis.”

“And so now Intel's pivoting to copy smart, only copy what's actually improvement instead of just copying everything exactly.”

“Intel detailed dramatic steps to revive its sagging fortunes, outlining layoffs for 15% of its workforce, and scrapping plans to spend tens of billions of dollars on new chip facilities in Europe.”

“This is what moves the stock, in my opinion, more than the 15% layoff.”

“Revenue in the June quarter was roughly flat at 12.9 billion, beating Wall Street's expectations. The quarterly loss, though, widened to 2.9 billion for the quarter from a 1.6 billion loss in the year earlier period. The results represent the company's sixth c…”

“The fact that it's a grant that they're converting, I think is awful, because it was meant to be a grant, and that was a deal the United States of America made, and now we're going back on the paper that we signed as a country.”

“The fact that it's a grant that they're converting, I think is awful, because it was meant to be a grant, and that was the deal the United States of America made, and now we're going back on the paper that we signed as a country.”

“I don't think the government's equipped to make the decision on how they should position against TSMC, where they fit in Apple Silicon versus TPU versus Tranium. Like, it just doesn't seem like government's set up to actually run this company more effectively …”

“Even with the recent share price rebound in August, followed by reports of the deal with Trump, the company is now valued at a hundred and ten billion, a fraction of his dot-com bubble peak.”

“They've received two billion already.”

“Intel and the U.S. Soon agreed that the government would use 8.9 billion in grants that have been committed, but not paid to take a nearly 10% stake at a slight discount.”

“SoftBank led by Masa suddenly agreed to put two billion into the company, part of its campaign to bet on us firms and appeal to Trump.”

“Agreement that we can work together, and then more important, I don't need the grant, but I really look forward to have the US government be my shareholder, and we can work together.”

“Just for context, last year Intel brought in fifty billion dollars in revenue, but they lost 18.8 billion.”

“David Shapiro, a former partner on the Wall Street firm, Watchdoll, Lipton, and Rosen, and Katz drew up the terms, including a provision that the government could acquire another five percent of Intel at a discount if the company sells the majority of its manu…”

“Tan has so far shied away from spinning off the manufacturing segment, which lost 3.2 billion in the second quarter.”

“And at three o'clock, we're going to sign the document together in the Oval Office, where the United States of America will own 9.9% of the great American technology company Intel.”

“The stock is down roughly 50% since the start of last year.”

“ASML, the Dutch company, they did what's called a customer co-investment program. Where Intel, TSMC, and Samsung pitched in 6.8 billion dollars across R&D funding and equity purchases in the company in order to help pull in order to help ASML. This is 2012.”

“We double the market cap. It's over two hundred billion.”

“And Bob Noyce made the decision that we will sell to the government, but we're not going to design chips for the government. And the distinction there was you had guaranteed orders, which was great. The government would take your IP, and there was, and in his …”

“So then, most recently, we, we've seen the Trump administration take you know, equity in certain companies. Right, so this is, like, Intel. This is MP Materials.”

“We are currently in what seems like a little bit of a CPU crunch. Intel can't make CPUs fast enough.”

“We have Dell, AMD Intel CFO talked about, they're talking about three to five year locked, locked in supply contracts from hyperscalers.”

“Intel's the big one where post-government stake, I think the stock is up 200 or 400%, something like that.”

“Since Washington stepped in, as you know, Jordy Intel has pulled five billion of investment from NVIDIA, two billion from Japan's SoftBank, and its shares have more than quadrupled, trouncing those of rivals.”

“So in order for the government stake to reach 10% demanded by President Donald Trump, Intel had to convert billions in manufacturing grants advanced under the 2022 CHIPS Act, plus 3.2 billion dollars of contracts from the Department of Defense into equity.”