I think Intel believe they are still a great company because they are currently breaking profit records. Selling Desktop CPUs isn’t really what Intel makes most of its money from. As a company Intel are killing it at the moment.Maybe, if they can make it work. Rory Reed thought the mobile CPU market was enough for AMD. Granted, this is a different situation, but essentially, IMO, it sounds like a similar strategy. Take what they think they are good at it, and make due with that.
Personally, I find a measure of corporate hubris in this. To me, it seems that Intel thinks they are a great company, and measured by size and past successes, they are; however, I worked for a once industry giant. I saw a similar hubris within that company as if there was nothing that could stop them. Well, that company is basically no more, and based on my experience, corporate hubris is something that can be a deadly parasite that no one sees coming.
We will see what happens.
They are far from “no more”. Their CPUs are currently losing to the very latest AMD stuff but they still command a 4/5 market share in that area. It takes time to lose the sort of lead Intel developed during AMDs absence for the last decade.