Joanne Feeney

Clearly ripe for competition to come in there.

But with their outlook showing that they've sold out of their server CPUs, they're going to have a weak quarter this quarter.

The yields are lower than they would like.

And people look at that gross margin, and they see it as a really important signal of how much progress they're making in a complex manufacturing process.

And clearly, they're not making as much progress as investors would like and as the company would like.

And so I think it's a particularly risky bet.

We have not owned Intel for clients.

We think that the opportunity cost is just too high.

You can own

Broadcom, which we've owned for 11 years for clients.

You can own NVIDIA, which we've owned for clients since 2022.

These are clearly market leaders, and they've ironed out the design challenges and through their partners like TSMC, the manufacturing challenges.

And so they're delivering.

And Intel faces now a chicken and an egg problem on the 14A process.

Yeah, Intel's tried to enter the Foundry world.

We've talked in the past about how challenging that is to move from producing your own chips to move to producing others.

You need the design libraries and all that, but they fundamentally need the manufacturing process.

And the problem that they face right now is that on the one hand, they're saying, hey, we don't want to invest the CapEx to build up this capacity until we have customers locked in.

But customers aren't going to lock in unless they know they have a manufacturing process that works and that can deliver.

Because you're designing a product.