Gerstner cites Morris Chang explaining why Texas cannot compete with Taiwan fab plants.
“The U. Yeah. Interestingly enough, he ran a fab plant for Texas Instruments in Texas. And he explains why Taiwan, like why Texas could never possibly compete with a fat plant in Taiwan.”
Gerstner notes memory and logic stocks trade at five times fully taxed earnings with flat to down multiples.
“if you look at the multiples, the fully taxed gap earnings of those businesses, the multiples are actually flat to down, Scott. They're they're trading at five x fully taxed earnings.”
Gerstner defends Intel government stake as smart negotiated transaction that saved critical resource and generated handsome profit.
“I I disagree with that. I think the intel stake intel was gonna go bankrupt. The US government intervened. It saved a critical national resource.”