AMD is cutting its workforce - is Intel next?
Is this a bigger trend we're seeing (example: an overall slowdown in the semi-conductor space) or is AMD just feeling the wrath of Intel?
If it's the latter, I might start buying Intel stock. Thoughts?
Answers
364 points
ISIStudios answered 2 years ago …
I think we're going to see a slowdown in tech across the board (according to Cisco and Oracle at least). BUT, this news from AMD is really JUST AMD's problem. They really can't compete over the long haul with a company like Intel. Intel is just too fortified in its position and the constant innovation and ability to be nimble (while dominating a market) will always give it a competitive advantage over a firm like AMD.
I wouldn't say run out and go long INTC, but I'm definitely an Intel bull over the long term.
952 points
Grudun answered one year ago …
I don't see Intel going through significant cuts(reduction in force by attrition is howevery likely). Based on their equipment purchases(I consult for a company in the semiconductor equipment field) they are slowing their new initiatives but are still pushing the promising channels. AMD is reducing their purchases toward maintenance levels.
Look at AMD's balance sheet and you see they are carrying significant debt which is the primary cause of these cuts. Intel has plenty of cash to ride out a reasonable downturn.
At the end of this downturn expect to see Intel shoot up while AMD continues as the also ran.
As was said above now may not be the time to buy Intel but long term is will be the better investment.
129 points
tarenfro answered one year ago …
Intel will not have a large layoff this year. Intel went through a tough restructuring with layoffs last year. They have their best product line in history. They have a big competitive advantage over AMD with their current CPU design. The Intel "tic-toc" approach of spinning a new CPU design every other year with a new transistor density each year they don't have a new CPU design is a very aggressive. They have a revolutionary fabrication method using the element hafnium to reduce current loss and a new transistor design that makes their processors very efficient. Intel is doing pretty well right now.
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