SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Intel Corporation (INTC)
INTC 40.51+0.4%Dec 9 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mary Cluney who wrote (80071)4/27/1999 11:43:00 AM
From: Harry Landsiedel   of 186894
 
Mary. Re: "Let's give Intel a little bit of credit." Always prepared to do that. But after the company admitted missing the low end in their primary business (see the annual report), we must be paranoid to the possibility of error, particularly in a new venture.

Do you really think that they would go into this without...business plans with a high margin built in. I have been reminded repeatedly by wiser heads than mine on this thread that Intel's stated goal is to maximize gross margin DOLLARS. That means return is secondary to growth. I believe this is a correct strategy within reason, since with a 57% gross margin and a 35%+ ROE, it's tough for many new businesses to hit this hurtle rate.

I have been asking myself what Intel core competency is really addressed with these data centers. You point out some (What Intel is good at is in process engineering.) But having the capital to invest in these centers may be a more important one than the thread has taken note of yet (to wit: what they do better is make money)

In this sense Intel's investment in datacenters may be akin to GE's Capital Management arm. As long as the datacenters match the return of alternate investments (buying back shares for example) they are a good investment.

HL
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News