| | | Yeah... That's a tempting dividend for a tech stock. But I'm afraid their good business fortune has come to an end. Just like 95% of the businesses out there now during this "pandemic", Intel has been rendered "non-essential"... by its competitors, and it's own lack of innovation the past 7 years. Unlike 20 years ago, the world wouldn't miss a beat if INTC never shipped another chip.
My first job out of school in '91 was with Xerox, and I liken where Xerox was then with where Intel is now. Competitors could step right in and fill the demand just as well if INTC was no more. Their competitive advantages/differentiation have been squandered, and it would take a miracle to regain it. Margin power will continue to diminish as OEM's look to maintain their own margins at the expense of component suppliers. Had INTC been able to vertically integrate like Microsoft, they would have a chance. When it gets to $20/share, maybe a raider could come along, take it private, sell off profitable pieces and make a few shekels. But why bother... Let nature retake what man hath appropriated. |
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