This is Matt Reustle. Today, we are breaking down Intel. In the late 80s, a newly appointed CEO, Andy Grove, pivoted to exit memory chips and focus on logic chips. They were the leading edge chip designer, but Intel missed out on the mobile market and EUV technology as technology shifted. Now they’re left playing catch up and falling from their iconic status.
To cover Intel, I am joined by Todd Ahlsten, CIO of Parnassus Investments. Todd started covering semiconductors in the mid-nineties and has since lived through eight cycles in the sector. We look at what separates secular changes from cyclical ones, and Todd helps outline what went wrong, what is changing today, and what we can monitor as this progresses. Please enjoy this breakdown of Intel.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/10611948/ahlsten-cyclical-recovery-or-secular-demise
—–
Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke
Show Notes:
(00:00:00) Welcome to Business Breakdowns
(00:04:32) Introduction to Intel’s History and Current Challenges
(00:10:45) Intel’s Missed Opportunities and Current State
(00:12:02) Intel’s Strategy for Recovery
(00:18:30) Tracking Intel’s Progress
(00:21:43) Understanding Intel’s Profit Pools and Future Potential
(00:29:21) The Future of GPU and CPU Markets
(00:34:34) The Future of Intel’s GPU Space
(00:35:49) Recovering Intel’s CPU Business
(00:44:21) The Geopolitical Dynamics Impacting Intel
(00:48:25) Competition Landscape: NVIDIA and AMD
(00:52:28) Intel’s Diverse Portfolio: Mobileye, Altera, and More
(00:56:09) Risks and Challenges for Intel
(00:59:17) Intel’s Role in the Semiconductor Cycle
(01:05:47) Lessons from Intel’s Business Model