Intel sure is in decline but basically started the computing revolution and for years has been the only CPU on desktop and even in the data center. Assuming Nvidia manages to be the chip of the data center, can it still sell more than Intel? Intel revenue right now is still double Nvidias. So what gives?
Nvidia q4 2023 revenue 22B Intel q4 2023 revenue 15.4B Nvidia data center revenue for Q4 2023 18B Intel data center revenue for Q4 2024 4B Why do you say Intel revenue is double? Nvidia is already selling more than 4 times of Intel in data center market. Intel has been losing market share and its revenues have been falling. Nvidia has been setting earnings records and gaining marketshare.
Intel's free cash flow is abysmal and will need a few years to recover. I am bullish on them over the long-term, but they have neglected critical R&D and will have to play catch up. The advantage is they have their own foundries.
Intel owns fabs, Nvidia outsources to TSMC Lots of debt needed to get those fabs up, hence the trash FCF
TSMC market cap is over 3x of Intel, while it mostly only manufactures for fabless semi companies like NVDA. Intel has issues far beyond what you mention here.
intel net debt is about 25b (50b debt - 25b in overall cash or other investments) not sure how much debt nvda is carrying. 25b is big for us suckers.
In the late 90s and early 2000s Intel was valued similar to Nvidia on P/E terms but the company didn't recover from the crash as the market matured. Same thing will happen to Nvidia at some point in it's growth cycle. In the current market, For every Intel chip, nvidia sells 4x chips in the same server and at a higher price.
No of employees and infra cost