Painful, but not at all surprising. Arm is the present and the future. Intel is the past.
This time last year I said - right here - "If you own any Intel stock, now is the time to sell it." All phones are Arm. All tablets are Arm. Everything Apple sells is Arm. Windows PCs are finally moving to Arm.
Unless Intel faces reality and starts building Arm chipsets, Intel has no future. Polaroid was once the king of the instant camera market, but totally ignored digital cameras until it was too late. Intel is going down the same road.
With all due respect, your analysis is missing some crucial data points.
Intel's current crisis is NOT its PC chips. According to Intel's financial report from today, its Client Computing Group (CCG), its chips division, made $7.4 billion, which is up 9% year over year.
That business is doing well and is ahead of schedule for Lunar Lake, which is said to compete with Qualcomm in efficiency. LL is launching at IFA in early September and will power "80 new Copilot+ PCs across more than 20 OEMs."
As the article notes, 1. AI (and the lack of uptake on it, along with NVIDIA's dominance in the server space) and 2. Intel's IDM 2.0 strategy, which is billions and billions in investments, is the main sticking point for the company.
It takes around $10 billion to build one foundry, let alone maintain it, which is why AMD, Apple, and Qualcomm do not make their own chips (they only design them). Few companies on the planet can invest as much capital and experience as Intel in this space, which is why only TSMC and Samsung are doing it now.
Until Intel completes IDM 2.0 and opens its new foundries to Qualcomm, Amazon, and others to compete against TSMC, which is not expected until 2027, it will work within very close margins.
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