Legendary former Intel CEO Andy Grove’s 1996 bestseller “Only the Paranoid Survive” warned of predicting tech inflection points that could undermine a business. Intel, once the world’s largest producer of computer chips, failed to adapt to mobile computing and the AI boom, missing out on significant market share.
Intel’s latest attempts to compete in AI have been met with limited success, despite releasing an AI accelerator chip called Gaudi. The company is now focusing on creating a leaner, simpler, and more agile organization, but investors remain uncertain about its future product roadmap and ability to find sufficient customers for its foundry business.
The Biden administration’s push to revitalize chip manufacturing on American soil has also been dogged by delays. Intel’s struggles have raised questions about a potential takeover or spin-off of its foundry unit, with some analysts suggesting that the company could be sold to a rival like Qualcomm.
Analysts say that Intel must retain majority ownership of its Foundry business to receive CHIPS Act funding, which hinders the potential for acquisition or spinoff options. However, if tensions between China and Taiwan increase, chipmakers could look to Intel’s US facilities to make more products, providing a potential lifeline for the struggling company.
With investors eagerly awaiting clarity on Intel’s future direction, analysts warn that the company must be able to predict the next major technology wave. As former CEO Andy Grove once said, “you have to be able to call the inflections.”
Source: https://edition.cnn.com/2024/12/04/tech/intel-brand-decline-gelsinger-retirement/index.html