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mtarascio t1_j1v6uk0 wrote

Reply to comment by BayouMoose in Chipmakers Struggle With Inventory Buildup On Pandemic Demand Correction by Genevieves_bitch

It's cycles mate. They use debt off the stored value of their good times, whether via market cap or stock buybacks.

You can enact austerity if you're an idiot.

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BayouMoose t1_j1v7hgm wrote

That’s not how a business works. You don’t burn cash when you are t making it. They’ll be doing r&d for sure, but when you have less cash coming in and more inventory building, the solution is not spend more money to sell a new product when the old ones are selling

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