I remember the conference call distinctly. The question came up in the conference call about CAPEX. Intel answered it and analysts drew their own conclusions. The jest of the analysts conclusion is that Intel is spending money on Fabs that it didn't need. Intel said in the conference call flatly that they will need that capacity. So now we are learning the rest of the story.
Not only did the analysts criticize the spending they were hyperventilating over it and promptly downgraded Intel's shares becaue they didn't understand the strategy. But this just underscores that analysts see the world as a spreadsheet isolated from the reality of competing in the real world. Don't expect to see those analysts admit their ignorance now though.