Thompson warned AI giants risk Intel’s buyback-over-manufacturing mistake, while INTC surges 523% and T rebuilds at a P\/E of 7 on fiber.<\/p>\n<\/li>\n
Doc Rock cited Randall Stephenson’s $48 million AT&T salary during near-collapse as a textbook case of executive pay misaligned with long-term value.<\/p>\n<\/li>\n
Anthropic has edged past OpenAI to nearly $1 trillion valuation as a private company, leaving public investors no direct way to buy in.<\/p>\n<\/li>\n
Don’t wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now<\/a>.<\/p>\n<\/li>\n<\/ul>\n A panel discussion on episode 1,089 of This Week in Tech (TWiT) debated sky-high AI valuations and capital allocation, with host Leo Laporte and guests Ian Thompson, Owen Thomas, and Doc Rock. They argued that today’s AI leaders face the same capital-allocation challenge that confronted earlier technology giants.<\/p>\n Their warning centered on Intel<\/strong> (NASDAQ:INTC<\/a>), which Thompson described as a company that spent heavily on share buybacks while falling behind in manufacturing technology. With Anthropic reportedly approaching a $1 trillion<\/strong> valuation and OpenAI valued at more than $850 billion<\/strong>, the panel argued that how AI companies deploy capital may matter just as much as how quickly they grow.<\/p>\n Ian Thompson’s Warning About Share Buybacks and Innovation <\/p>\n Thompson’s argument: AI giants risk repeating what he framed as Intel’s defining error. He said Intel “spent billions buying back its own shares to support the share price and let chip manufacturing technology just lie useless. And now they’re paying the price for it.” Thompson added that share buybacks were illegal until Reagan-era reforms in the 1980s.<\/p>\n Don’t wait:<\/strong> the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now<\/a>.<\/p>\n The market has repriced that thesis in real time. Intel shares closed at $133.99 on June 18, with the stock up 263.12% year to date and 523.5% over the trailing year. CEO Lip-Bu Tan told investors on the Q1 FY2026 call that “the next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”<\/p>\n Intel’s Q1 FY2026 earnings release showed revenue of $13.58 billion, up 7.2% year over year, with Data Center & AI revenue of $5.05 billion (+22% YoY) and Intel Foundry revenue of $5.42 billion (+16% YoY).<\/p>\n Why Anthropic’s $1 Trillion Valuation Matters <\/p>\n According to the panel, Anthropic has edged past OpenAI to nearly a $1 trillion<\/strong> valuation as a privately held company, a milestone a guest called “unprecedented.” The reporter noted that OpenAI counts 1 billion weekly active users and raised financing at an $852 billion<\/strong> valuation, while cautioning that OpenAI’s reported losses are complicated by its nonprofit-to-for-profit conversion and non-cash stock compensation. The guest also said OpenAI has reportedly confidentially filed to go public but may delay the IPO.<\/p>\n How Executive Incentives Can Distort Capital Allocation <\/p>\n![\"trendobjects](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/06\/18b405066836038780e21ffcaf42fbc2.jpeg\")
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