News [CNBC] Intel stock pops on earnings beat and return to growth

jpiniero

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Kind of funny given that the numbers look pretty bad. NB volume was -10% compared to last year and Desktop was -11%. Server volume was -6%.
 

Markfw

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This is the insanity that drives me crazy. AMD has them beat on every area in the server venue as far as performance or price/performance, etc...(the high profit area). They are (best case scenario) tied in desktop, even though I would question that, just that the 9900k seems to have some following. Desktop is even starting to be questioned.

What idiots would put their faith into Intel (short term). Investors who see nothing but numbers ? and as pointed out a lot of them are not good.
 

jpiniero

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What idiots would put their faith into Intel (short term). Investors who see nothing but numbers ? and as pointed out a lot of them are not good.
They did announce a big increase in their stock buyback program. I think it was authorized for up to $20B more. 'Course stock buybacks are a short term thing.
 

thesmokingman

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This is the insanity that drives me crazy. AMD has them beat on every area in the server venue as far as performance or price/performance, etc...(the high profit area). They are (best case scenario) tied in desktop, even though I would question that, just that the 9900k seems to have some following. Desktop is even starting to be questioned.

What idiots would put their faith into Intel (short term). Investors who see nothing but numbers ? and as pointed out a lot of them are not good.
Capital gains isn't what's keeping institutional investors from leaving Intel. It's that they pay high dividends so even when Intel drops those dividends keep coming. Intel also lowered their expectations so the slight gains from that lowered forecast still looks decent. That said its good to see them rebound a lil bit as the sector overall is more important... albeit for my holdings at least well and the gaggle of others playing the index.
 

Hitman928

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Kind of funny given that the numbers look pretty bad. NB volume was -10% compared to last year and Desktop was -11%. Server volume was -6%.
Server volume down but revenue still up. ASP are up across the board. Will be interesting to see what happens to ASP with Zen 2 as a competitor now.

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jpiniero

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Server volume down but revenue still up. ASP are up across the board. Will be interesting to see what happens to ASP with Zen 2 as a competitor now.
Yeah that's baffling that is still happening. But Rome hasn't shipped in volume yet. I guess the desktop and laptop ASP improving has more to do with Atom getting the shaft with the shortage.
 

Hitman928

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Yeah that's baffling that is still happening. But Rome hasn't shipped in volume yet. I guess the desktop and laptop ASP improving has more to do with Atom getting the shaft with the shortage.
Yeah, I think because intel can't meet demand they are dropping the lowest ASP products which AMD of old was happy to gobble up and probably still are to some degree but now they are filling those slots with old products rather than relying on those sales for their income. It's funny with all the industry is dying and mobile is taking over talk over the last decade and here we are in 2019 and both AMD and intel are selling every last chip they can make and are doing so at increased selling prices.
 

Nothingness

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Kind of funny given that the numbers look pretty bad. NB volume was -10% compared to last year and Desktop was -11%. Server volume was -6%.
And Operating income down 12% YoY, Net income down 5%. Also Data Center revenue up only 4% while Intel was claiming back in 2017 they'd get "low double digits" growth for DCG (and that was down from previous claims where they said they'd get 15% per year). I fail to see how these are great results but I'm clueless as far as finance goes; I guess it's because Intel results were better than expected.

As far as AMD goes, it's not because they've been better for a few months that the switch will happen. Changes in data center take time, there's a lot of inertia. AMD will have to maintain the lead long enough and prove they can supply enough chips before we see a significant move away from Intel.
 

beginner99

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Hmmmm, what I should have written was how lack of capacity seems to be hardly hurting Intel, yet it is stopping AMD from getting the marketshare they would surely get if they had say twice the capacity from TSMC.
As I posted in another thread it's either capacities or the OEMs themselves. In the market for a compute server /workstation but all the big OEMs only offer xeons on that area. hundreds of models of xeons, 0 AMD options. Only thing I found was some common purpose 1U servers with the lower end Rome skus. In the compute /AI space, oems bet 100% on xeons. heck, same is true for smaller local shops albeit at these you at least get other options.
 

liahos1

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Aug 28, 2013
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funny how some in this thread are unhappy with intel doing well. Company desktop cpu unit sales were up 17% sequential DESPITE Ryzen 3.

Consensus expected DGG revs down 9% yoy, they were up 4%.

ASPs up across the board. And the forward guidance was increased.

In addition, the company bought back 4.5bln dollars of equity in the quarter and added an additional 20bln of repurchase authority which they plan to use over the next 15-18months.

Does this sound like a company that is -redacted- their pants?

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jpiniero

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As I posted in another thread it's either capacities or the OEMs themselves. In the market for a compute server /workstation but all the big OEMs only offer xeons on that area. hundreds of models of xeons, 0 AMD options. Only thing I found was some common purpose 1U servers with the lower end Rome skus. In the compute /AI space, oems bet 100% on xeons. heck, same is true for smaller local shops albeit at these you at least get other options.
Dell sells several server models with Epyc. I guess they wouldn't be considered compute servers, more general purpose, but it does have dual 64 core options.
 

jpiniero

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In addition, the company bought back 4.5bln dollars of equity in the quarter and added an additional 20bln of repurchase authority which they plan to use over the next 15-18months.
Increasing stock buybacks is exactly what they would do if they were crapping their pants.

I can't imagine Server ASP is going to last now that Rome is out. Even if the big players stick with Intel I have to assume they will want big, big discounts.
 

liahos1

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Increasing stock buybacks is exactly what they would do if they were crapping their pants.

I can't imagine Server ASP is going to last now that Rome is out. Even if the big players stick with Intel I have to assume they will want big, big discounts.
uh no. Companies get aggressive buying back their stock when they think they are undervalued. Not when they are scared lol. I dont think you know anything when it comes to investing or corporate actions.

Intel spent 10bln ytd buying back their own stock. They are about to spend another 20bln in the next 15-18months buying back their stock.

In addition to that they are increasing their wafer capacity 25% next year (on top of the 25%) this year.

The company is THE ONLY large semi company that has increased its guidance this year.

Wall st. estimated ASPS down 6% for PC and 3% for DCG, ASPS were up in both segments.

Wall st. estimated DCG revenues were going to be down 9%, they were up 4%

AMD has been "competitive" since 2017. While they have taken share, Intel has hit record numbers, asps, earnings. .

The amount of hate in here on the company makes no sense. Intel certainly has been doing well and has crushed bearish expectations.
 

soresu

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Hmmmm, what I should have written was how lack of capacity seems to be hardly hurting Intel, yet it is stopping AMD from getting the marketshare they would surely get if they had say twice the capacity from TSMC.
I suspect that the chiplet strategy introduces greater mounting complexity for AMD, the problems may not be entirely down to TSMC's capacity to fab the chips, but also to AMD to put them together in a single package.

Even <=8C requires 2 dies to be mounted, 12-16 requires 3 and Epyc up to 9 dies.

Chiplets might be more profitable and give greater versatility in SKU's, but it will almost certainly be a drag to put them all together when they come back from the fab - perhaps AMD just needs time to expand their internal integration/packaging capacity to meet demand.
 
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jpiniero

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uh no. Companies get aggressive buying back their stock when they think they are undervalued. Not when they are scared lol. I dont think you know anything when it comes to investing or corporate actions.
They buy the dips obviously when the stock slumps to prop up the stock. At they are using free cash to do that, unlike a lot of companies these days who are borrowing massive amounts of money to do so.

It's also concerning that R&D is going down even though that's the biggest thing they need right now.
 
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Abwx

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uh no. Companies get aggressive buying back their stock when they think they are undervalued. Not when they are scared lol. I dont think you know anything when it comes to investing or corporate actions.

Intel spent 10bln ytd buying back their own stock. They are about to spend another 20bln in the next 15-18months buying back their stock.

In addition to that they are increasing their wafer capacity 25% next year (on top of the 25%) this year.

The company is THE ONLY large semi company that has increased its guidance this year.

Wall st. estimated ASPS down 6% for PC and 3% for DCG, ASPS were up in both segments.

Wall st. estimated DCG revenues were going to be down 9%, they were up 4%

AMD has been "competitive" since 2017. While they have taken share, Intel has hit record numbers, asps, earnings. .

The amount of hate in here on the company makes no sense. Intel certainly has been doing well and has crushed bearish expectations.
That s thanks to a deliberatly organised shortage to keep prices high and also do some coercition against firms that are too AMD friendly...

Their volumes are down 10% on year after a previous year that also saw volumes shrinking, but they re still out of capacity production..?..

That doesnt ring a bell..?.
 
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liahos1

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They buy the dips obviously when the stock slumps to prop up the stock. At they are using free cash to do that, unlike a lot of companies these days who are borrowing massive amounts of money to do so.

It's also concerning that R&D is going down even though that's the biggest thing they need right now.
Their R&D is up over a bln dollars over the past few years. They spend 2x in R&D what AMD generates in annual revenue. What are you going on about?
 
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jpiniero

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That s thanks to a deliberatly organised shortage to keep prices high and also do some coercition against firms that are too AMD friendly...

Their volumes are down 10% on year after a previous year that also saw volumes shrinking, but they re still out of capacity production..?..
They did say 14 nm wafer starts were up 25% compared to last year. That can be easily answered because the client parts have more cores and thus they get less product per wafer.

IOW AMD's obsession with cores has caused Intel's shortages and is pretty clearly hurting Intel due to the cost of sales going way up.
 

jpiniero

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Their R&D is up over a bln dollars over the past few years. They spend 2x in R&D what AMD generates in annual revenue. What are you going on about?
They've spent less on R&D compared to last year. Go look it up.

Can't really compare to AMD since they also are including the R&D for fabs I have to think.
 

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