I am holder of Nvidia stock and last year was catching up on some analysis of them by a analyst I like to follow.
Anyway he was putting forward that Nvidia may become a casualty of their own success such as Intel was. Then he explained that Nvidia gives out for compensation to it's engineers just fantastic stock options. To which from this compensation it has turned a good portion into millionaires and multi-millionaires.
He further explained this is what Intel had done and the problem it caused is Intel went from being a absolute leader to behind the eight ball. It's people who shot them up to the top and a leader in their industry. They all retired at a early age because their vested options had made them rich. So they figured why work when I can retire and live off the money that my options have made me.
From there it just got worse as the company found itself instead of no longer being the leader they found themselves chasing and making some bad decisions along the way. I was hoping for their sakes that they might get a chance to be revitalized when they decided to pivot heavily into becoming a foundry using money from the chip act to help make it possible.
However, with Taiwan semiconductor making an additional commitment of 100 billion in addition to the 65 billion they have already spent on their facilities in Phoenix. Intel is in a bad financial mess one that their new CEO Lip-Bu Tan is addressing with a new strategy going forward. It may work or may not. They still remain a key player in the semiconductor industry which could make them a target for a merge or being acquired which might be their lifeline to survive. If of course the new direction fails then that may be their only option going forward.
Anyway he was putting forward that Nvidia may become a casualty of their own success such as Intel was. Then he explained that Nvidia gives out for compensation to it's engineers just fantastic stock options. To which from this compensation it has turned a good portion into millionaires and multi-millionaires.
He further explained this is what Intel had done and the problem it caused is Intel went from being a absolute leader to behind the eight ball. It's people who shot them up to the top and a leader in their industry. They all retired at a early age because their vested options had made them rich. So they figured why work when I can retire and live off the money that my options have made me.
From there it just got worse as the company found itself instead of no longer being the leader they found themselves chasing and making some bad decisions along the way. I was hoping for their sakes that they might get a chance to be revitalized when they decided to pivot heavily into becoming a foundry using money from the chip act to help make it possible.
However, with Taiwan semiconductor making an additional commitment of 100 billion in addition to the 65 billion they have already spent on their facilities in Phoenix. Intel is in a bad financial mess one that their new CEO Lip-Bu Tan is addressing with a new strategy going forward. It may work or may not. They still remain a key player in the semiconductor industry which could make them a target for a merge or being acquired which might be their lifeline to survive. If of course the new direction fails then that may be their only option going forward.