Chip-making giant Intel (INTC) recently exceeded the market’s expectations, posting financial results that beat the consensus estimate , notes Steve Mauzy, editor of Wyatt Research's Personal Wealth Advisor.
New Intel CEO Pat Gelsinger led the subsequent conference with analysts. Analysts were disappointed that Gelsinger & Co. failed to announce any drastic changes to Intel's perceived manufacturing woes.
Gelsinger reiterated that Intel might move some products to outside foundries, but the "majority of 2023 products" would remain in-house. Analysts were expecting a shift toward more outsourcing to other people’s foundries.
Producing cutting-edge semiconductors is a challenge, to state the obvious. Intel has struggled and lost ground in recent years. The positive takeaway is that Gelsinger, a former Intel employee, is confident he can return Intel to its former glory.
During his 30-year tenure at Intel, Gelsinger was the architect of the key 80486 chip. He rose to chief technology officer before leaving to spend the past eight years as CEO of software company VMware (VMW).
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Intel has struggled and recovered in the past. Gelsinger mentioned during the analysts’ meeting that the company was slow to transition to chips with multiple processing cores 15 years ago.
Intel recovered to assume the lead position. “Great companies are able to come back from periods of difficulty and challenge,” Gelsinger assured analysts.
Intel is a great company. I’m confident it will come back from this current difficult and challenging period to resume a lead position again. Everyone should consider an investment in Intel.
