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Intel Corporation (INTC) CEO Pat Gelsinger on Q3 2021 Results - Earnings Call Transcript

Oct. 21, 2021 9:45 PM ETIntel Corporation (INTC) Stock21 Comments
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Intel Corporation (NASDAQ:INTC) Q3 2021 Earnings Conference Call October 22, 2021 5:00 PM ET

Company Participants

Pat Gelsinger - Chief Executive Officer

Tony Balow - Vice President and Director of Investor Relations

George Davis - Chief Financial Officer

Conference Call Participants

Joseph Moore - Morgan Stanley

Ross Seymore - Deutsche Bank

John Pitzer - Credit Suisse

Stacy Rasgon - Bernstein Research

Timothy Arcuri - UBS

C.J. Muse - Evercore ISI

Blayne Curtis - Barclays

Pierre Ferragu - New Street Research

Matt Ramsay - Cowen


Thank you for standing by, and welcome to the Q3 2021 Intel Corporation Earnings Conference. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your host Vice President and Director of Investor Relations, Tony Balow. Please go ahead.

Tony Balow

Thank you, Operator. Welcome to Intel's Third Quarter Earnings Conference Call. By now, you should have received a copy of our earnings release and the earnings presentation. If you've not received both documents, they are available on our investor website, inct.com. The earnings presentation is also available in the webcast window for those joining us online. I'm joined today by our CEO, Pat Gelsinger, and our CFO, George Davis.

In a moment, we'll brief remarks from both, followed by Q&A. Before we begin, let me remind everyone that today's discussion contains forward-looking statements based on the environment as we currently see it. And as such, it does include risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially.

A brief reminder that this quarter we have provided both GAAP and non-GAAP financial measures. Today we'll be speaking to

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Comments (21)

"First, we will be removing stock-based compensation from our operating segment and non-GAAP results."

This was the least justifiable statement by INTC management in the entire call.
You lost me @ "We need the government's support to get on a level playing field."
@Feckless191 you think Tsmc/Umc are not subsidized
@TechieMan Who cares ? If your neighbor gets all kinds of government assistance, and you make $60 million a year, you should get freebies too ? That's Bull*^#%. Plus whenever you take money from the government, you are giving away control of your company.
@Feckless191 oh, really. US/European governments are bending backwards to get intel fabs in their countries. Ask Italy/Germany and many others
I'll tell you what strikes me most out of all this is the tremendous scope and complexity that falls under "INTC" these days. This is always true of Fortune 50 companies, but looking at that list now, most are service or retail companies, Apple at #3 and Exxon at #10 build/produce things, the other 8 do not. That's kind of scary, but that's another topic. True of at least the first 50, btw INTC is #40. (Fortune site only seems to let you browse for a few minutes unless you have an account)

Pat says:

"We've been woefully short of capacity for a number of years."

Really? That's an interesting statement that deserves some discussion.

"Sapphire Rapids, it's exactly what we said back in June of this year, that's -- it's going to be in production in Q1, ramp in Q2"

If it ramps in Q2, then revenue in Q3 may be very nice. Wait for it.
22 Oct. 2021
Just buy most of TSM 3nm capacity with the cash (likely need to share with AAPL), and block AMD's access to TSM's 3nm for a couple (or more) years.
You really dont understand how TSMC operates do you?
22 Oct. 2021
@denkrak If you know, please share.
After following AMD, NVDA, INTC for so many years. It is clear to me there are different formula to interpret the CEO's talk. Talk is cheap!
Lisa Su: We have Good products -> we have Great products (conservative, still an engineer, deliver more than promise)
Jensen Huang: We have Great products - we have Good products (slightly inflated, top tier salesman)
Pat Gelsinger: No Products - We Will be the unquestionable No. 1 in every field we compete (Snake oil salesman, painted a rosy future that obviously he could not deliver, not an engineer anymore but a MBA style)
@Newamder Yes, it seems such a shame it's got to this situation, as it was apparent for all to see for so many years. Is this the same downhill slope that IBM slid into?
Still too overpriced. Needs to be low 40s or high 30s to be worth investing.
@Motek Moyen Listening to this conference call, I came away thinking the CEO (esp. with the CFO leaving soon) is painting a very bright picture for the Company just as the likes of TSMC, Apple, AMD and Nvidia are extending the lead in many nodes, product categories, and even markets. How do you see Intel now, given your recent optimism, incl. any insights you have on them 'blaming' China for many of their problems? Thanks.
@alpine Don’t jump the Gun. Intel projects lower margins (53%) over the next two years, they also say that the margin on the Foundry business will be over 50%. Today’s foundry cost is very low with all the depreciated factories and equipment. My guess is Pat is taking the meat off the table so that his competitors won’t be able to feast on his customers. With TSMC raising prices, inflation, and INTC holding prices things will get very tight for non-foundry sales. Absolutely the right way to get back on top as they make 22-25B per year.
@jbw1937 Intel has higher wafer cost than TSMC. Tell me again how is Intel going to have 50% foundry margins ?
@jbw1937 And how does that match with the 22-28B per year in Fab costs over the next 5 years? Not headed to the top... but it won't take long to figure that out.
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