Intel—the company whose chips were “inside” your ‘90s desktops—has fallen behind in recent years. Now, the CEO hired to turn things around is suddenly out. WSJ’s Asa Fitch explains how the once-dominant chip brand lost its edge. Further Reading: - He Was Going to Save Intel. He Destroyed $150 Billion of Value Instead. - Intel Co-CEOs Outline Strategy Following Pat Gelsinger’s Ouster Further Listening: - America’s Answer to the Chip Shortage - Why Washington Went to Wall Street to Revive the Chips Industry Learn more about your ad choices. Visit megaphone.fm/adchoices
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My colleague Asa Fitch covers a product that's often invisible to the naked eye, but critical to almost everything we do. You should know that some of us on the team kind of refer to you a little bit as Mr. Chips. We know that when there's a chip story, we know who to call.
I'll take it. That's a good nickname. I like it.
Chips. Those tiny, intricate slices of silicon. Asa calls them the engines of modern life.
Just think about, you know, the 80s and the 90s, there were PCs and they had chips. And then there was the smartphone revolution, and then everybody's carrying smartphone with chips in the smartphone. And you had cloud computing, you know, these massive data centers, and they had chips. And of course, now you have AI, and AI sort of runs on chips.
So every time that society's advanced, the answer has been, we need some more chips for that.
That's been a boon for the companies that make chips, companies like TSMC, or Taiwan Semiconductor Manufacturing Company, and Samsung. The chipmaker NVIDIA is currently one of the most valuable companies in the world, worth over $3 trillion. But there's one company that's conspicuously missing from that list of winners, the storied American chipmaker Intel.
Intel's stock has fallen over 50% this year. It's laid off thousands of employees. And last month, it was bumped from the Dow Jones Industrial Average and replaced by Nvidia.
Intel's been in the Dow for 25 years. What a knock for Intel.
Why is Intel struggling so much?
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