Intel's 2Q tells a lot of the health of high tech biz

Intel's report is an all-on disaster and documents an ongoing collapse; the firm had a 5% revenue shortfall but five times that in operating income.

The "client computing group" (that's PCs, folks) saw a revenue decrease against last year approaching 40%.

That's not a decrease or a "slowdown" it's an all-on collapse!

And by the way, so-called "cloud" and other "data center" processor revenue was flat as was "internet of things" while software and services were down 25% (the latter, however, is an immaterial part of Intel's business.)

Intel owns the data center business; nobody else is a material competitor in that segment, period.  The so-called "cloud" and data center business is dead folks; there is zero net growth, literally, in that line of business which means that everyone else in this space is not actually expanding anything, they're all playing financial games rather than adding to capacity and growing their businesses.

Cloud-Amazon-cloud-Salesforce-cloud-Rackspace-cloud-cloud-cloud-cloud-cloud horseshit!  No chip sales increase, no growth in that industry period.

Finally, this is the chip company that powers technology in the world and is buying back stock to the tune of more than half a billion dollars while its operating results deteriorate at five times the rate that sales decrease!

And this is good for a market that is up 15 SPX handles (and an NDX up 53?!)

The bottom line:

The tech "business" at its core on a global basis is literally disintegrating; there has been zero growth over the last 12 months at the cloud and enterprise level and an actual collapse at the "client" machine (e.g. PC) level.

You got a warning of a couple of quarters before it all went to hell in 2008.

Now you have another one in that one of the "highest of the high flyers" is "rewarded" with a 15% ramp when it's literally burning debt-issued cash in the furnace while the company that powers virtually every single cloud, data center and other enterprise computing device on the planet, including all the content delivery devices of that first firm has failed to show a single dollar of growth in the enterprise and cloud segment over the previous 12 months and at the same time "client" (consumer) CPU revenue has collapsed by 40%.

Nobody has said a damn thing about either of those facts on bubblevision this morning.

Just as nobody said a damn thing in 2007 and early 2008 on the TeeVee either.