Intel's Bold Move: Can It Chip Away At Nvidia's Lead?

Intel Corp INTC is making waves with its ambitious plans to revamp its operations, thanks to a hefty $8.5 billion boost from the CHIPS Act, a $280 billion package President Joe Biden signed into law in 2022.

The goal? To transform into a manufacturing powerhouse that could potentially rival giants like Nvidia Corp NVDA and Advanced Micro Devices Inc AMD. But Redditors have mixed feelings about Intel's prospects.

Thoughts on Intel as long-term?

NVDA vs. INTC: The Market Speaks

u/hsuan23 cheekily pointed out the disparity in market cap movements, noting, “NVDA up 4-5% pre-market is the equivalent of 130B market cap of Intel.”

u/ImSometimesSmart piled on, suggesting, “One would need to wait decades to get 4-5% from INTC.”

Clearly, Nvidia’s impressive market performance looms large over Intel’s attempts at a comeback.

Intel's Leadership and Strategy

Intel's current CEO, Pat Gelsinger, has been a central figure in the company's turnaround efforts.

u/TheYoungLung emphasized Gelsinger's deep roots at Intel and his aggressive moves to steer the company back on course. Gelsinger's focus includes ramping up fab construction, securing cutting-edge tech from ASML Holding NV ASML and making cautious forays into the GPU market.

u/Fit_Function_405, a retired Intel executive, lauded Gelsinger's efforts to fix past missteps, particularly those left by former CEO Brian Krzanich. However, they advised waiting to see the success of Intel's 18A process before jumping in, noting, “Pat's working hard to fix the mess left by BK.”

Market Skepticism And Potential

Skepticism runs high among Redditors, with many cautious about Intel's long-term prospects.

u/browow1 bluntly stated, “Intel making their fabs and those fabs working is exactly what Intel has managed to mess up every step of the way.”

Meanwhile, u/heartoftuesdaynight highlighted Intel’s strategic move to build domestic fabs amid global supply chain uncertainties and geopolitical tensions with China.

Also Read: Chipmaker Intel Pauses Construction Of $25B Chip Plant In Israel: Report

Betting on a Turnaround

Despite the skepticism, some see potential for a turnaround.

u/Dulcidium described Intel as “oversold” and likened its current struggles to the initial pain of a workout, believing the company's industrial shift will yield growth.

u/Amika-zhou echoed this sentiment, predicting that successful fab establishment would positively impact Intel's market value.

Intel's ambitious plans and substantial government support provide a glimmer of hope for a turnaround. However, with a history of missteps and stiff competition from Nvidia and AMD, Intel's path to reclaiming its former glory is fraught with challenges.

As u/ComeGateMeBro aptly put it, “INTC is dead money until it isn’t. By the time it isn't, you'll miss the bottom like always.”

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