Intel Q1 FY12/25 Earning Review
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Make Santa Clara Great Again
Intel, as you know, has a new CEO. Lip-Bu Tan, previously the CEO at Cadence, held his first earnings call this week. He did what any self-respecting new CEO should do, which is to declare his love for the company as the reason for his self-sacrificial decision to take the CEO job (“I’m here to help. My $1m salary, $2m bonus, and $40m option award, you say? Why, that is merely to help me to help other people”). And then to toss major aspects of said company under the nearest passing bus. Company culture, cost base, capex budget, you name it, trashed. Nicely and with love for the company, of course.
Anyway, I think this is the right approach for Intel. In terms of culture and corporate behavior it is the nearest thing to a state-owned enterprise that exists in Silicon Valley and as such there will be a LOT of things that can be improved if a new CEO has the appetite to do so.
The company has a tailwind which is that it is the US’ best hope of re-shoring semiconductor manufacturing. Yes, TSMC has built and is operating fabs in the US but it is and remains a Taiwanese company. The MAGA story isn’t nearly so good as if INTC starts cooking on gas.
Let’s take a look at the numbers, valuation and the stock chart.
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