🔻 Intel (NASDAQ: INTC) just dropped 8.5% — and the bigger story isn’t just the earnings miss. It’s the long-term erosion of a tech giant’s competitive edge.
Intel reported a widening net loss of $2.1B, flat revenues of $12.9B, and announced another 15% workforce reduction, alongside scrapping plans for new chip facilities in Europe.
Here’s what’s more concerning:
💸 Intel spends more on R&D than NVIDIA—over $15B annually, nearly 20% of revenue. But what is that investment returning?
Compare that to NVIDIA, whose $8.7B R&D spend (18% of revenue) continues to fuel products dominating AI, cloud, and data center markets. NVIDIA’s market cap is now over $3T. Intel’s? Barely $90B.
📉 Big spend isn’t translating to big wins at Intel:
- Delayed chip nodes (7nm, 5nm)
- Strategic pullbacks
- Missed AI opportunities
- Below 50% gross margins, vs. NVIDIA’s 70%+
Intel’s new CEO, Lip-Bu Tan, is leading aggressive restructuring: cutting projects, slashing jobs, and walking away from anything generating less than 50% margins. It’s a survival pivot, not a growth play.
🔍 Meanwhile, NVIDIA is capturing the future — powering everything from generative AI to autonomous systems.
Bottom line: R&D alone doesn’t drive value. Execution does. Product-market fit does. Timing does.
Intel is fighting to stay relevant in an AI world it helped shape but is no longer leading.
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