Intel Corp (INTC)

[fastpathguru]

Please explain to me why a lower net margin indicates higher fixed costs.

It doesn't "indicate higher fixed costs", it indicates a high ratio of expenses/revenue. (That's how it's defined.)

I personally think that touting a high gross margin is dumb, when your net (profit) margin is far lower.

Intel needs to keep the pedal down on all major fronts (capex, r&d, stock buyback, dividend, mg&a), because letting off on any has non-trivial ramifications. They have a lot to worry about.

TSMC doesn't have to worry about the ramifications of cutting its already low levels of r&d, buybacks, dividends, mg&a... They are banking that money instead. They've got the slack to increase capex and bank money at the same time.

Like I said, you can tout Intel's "financial power" all you want... Fact is, they're still cutting capex.

That is not an "indicator" of "financial power."

fpg