So tell me how do they do that. Increase prices??
by not spending 20 billion on R&D ?
They spend more on R&D in a quarter than TSMC does in a year.
In 2024, Nvidia allocated $8.68 billion to R&D, a significant increase from $2.38 billion in 2019.
AMD research and development expenses for the quarter ending June 30, 2024 were $1.583B, a 9.7% increase year-over-year. AMD research and development expenses for the twelve months ending June 30, 2024 were $6.126B, a 11.4% increase year-over-year.
how many companies spend 20bil on R&D in a year? they could easily reduce it if they cared about a paper profit.
There's probably good reasons not to make a profit like taxes
In the USA you can carry losses forward and use them to avoid paying taxes on profits the next year I think?
Cash is king at the end of the day, Intel doesn't have unlimited reserves.
they still have 11b in cash, 17 bil in short term investments etc on their books, and they are investing heavily in the company.
whats their total assets like 200b? they aren't going anywhere any time soon.
I'd be more worried about what the 11bil inventory they hold is and how much of it is CPUs with a bad voltage rep