https://www.extremetech.com/computing/276481-intel-faces-14nm-shortage-as-cpu-prices-rise
Earlier Intel raised revenue estimates by an amount that AMD makes in 1 year. Perhaps they will need to do it again.
7 replies (most recent on top)
@5eih 😐 😐 😐
Its good being a monopoly. This is monopoly rents plus a hw refresh that’s been long overdue. AMD has now found a position where they have a better architecture and no yield problems like they did in the past. I don’t think Intel is done for but I do think they are rudderless and throwing stuff against the wall in hopes to find the next big thing. Bk was a disaster and once AMD starts taking serious market share in the data center you’re going to see a much smaller Intel.
@5kqk - Yes! This was BK's folly. The business itself is solid and has ongoing, rising revenue. But its product is all about visual sensing - Intel has no solid breakthrough beyond that, where the real money is. And the current mgmt, DD, bless his heart, will be told all sorts of half-truths by his immediate staff and parrot them out like IOT. Separate the Mobileye core business (solid) from the Intel slideware futures (not solid) to get the real picture.
@5otm - Very true. Wall Street has been dazzled the last two years by the steadily increasing revenue numbers and has bought into the story of diversification via FPGAs and autonomous vehicles. BS did his job in moving the squishy money around, but the debt has piled up, margins are fading, and 10nm equipment depreciation will come home to roost. On the flip side (and watch for this at the October earnings call), revenues are thru the roof as Intel is selling everything they can in 14nm variations, presumably with priority on the higher ASP and higher margin devices. This will somewhat mask their longer-term issues for another quarter or two. The TAM --IS-- increasing, particularly in the data center, and the SKL-SP upgrade cycle continues. The interesting part will be how much MSS AMD's EPYC is beginning to carve out.
The bottom line point is that Intel's revenues will be fine for the next 2-3 quarters. Our challenge will be to find how they are hiding the issue in the balance sheets.
Check the stock price. Why isn't it 100 or something, record revenue right?
Intel is not able to meet the yields with 14NM devices to meet the demand. HPE, Lenovo and Dell are using AMD and ARM.
@krj- You sound like that stupid socialist running for Congress in NY who said we have low unemployment because people are working two jobs. Fact is, Intel's 14nm chips run circles around AMD's second rate B-movie chips. if they did not, no one would be buying them.