According to Matt Wegner, an analyst at YipitData, “AMD’s Genoa and Bergamo (for data center) chips have a big price-performance advantage over Intel’s Sapphire Rapids processors, which should drive further share gains.” from AMD”.
“It is now clear why Intel needs to cut so much cost, as the company’s original plans turn out to be fanciful,” said the Bernstein brokerage. “The magnitude of the impairment is staggering, bringing potential concern to the company’s cash position over time.”
Intel, which plans to cut $3 billion in costs this year, generated $7.7 billion of cash from operations in the fourth quarter and paid dividends of $1.5 billion.
With capital spending estimated at around $20 billion in 2023, analysts say the company should consider cutting its dividend.
With information from Reuters