Question Intel Q2 Results - Terrible

Abwx

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Apr 2, 2011
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No wonder that they want a 20% prices uplift, this would put them back in the black at the rate of 2.5bn/Q net income.

They lost 2.5bn sales in client and 0.876bn in servers, we ll see in a few days if those amounts were captured by AMD or if it s the market that is contracting.
 

gdansk

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Feb 8, 2011
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Is this is good news, AMD is finally getting the sales its recently-great products deserve? or is it a sign of a recession?
 

TheELF

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Dec 22, 2012
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50.1% tax rate????
WTF happened there?
Datacenter is still growing by a lot, how the hell are those numbers THAT bad?
Well CHIP went through and even before that intel was building new facilities like nobodies business.
Taxes are super high for some reason and all the other expenses are for buying up equipment and building stuff.
Net income isn't that bad, it's the expenses that drag it down, well FABs don't build themselves.
 
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Markfw

CPU Moderator, VC&G Moderator, Elite Member
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Datacenter is still growing by a lot, how the hell are those numbers THAT bad?
How can it be growing a lot while its down 15% Y/Y ????

Edit: And I am sure AMD and EPYC are cutting out their share. When we see AMDs numbers soon, it will be clear.
 

Karnak

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Jan 5, 2017
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Well CHIP went through and even before that intel was building new facilities like nobodies business.
Taxes are super high for some reason and all the other expenses are for buying up equipment and building stuff.
Net income isn't that bad, it's the expenses that drag it down, well FABs don't build themselves.
Their guidance for the whole year of 2022 is now $8-11B lower than it was three months ago. That's not just a "fab" related thing. They would have known that already back in April.

By losing by A Whole Lot more in Client...!
I was specifically referring to DC and not the overall numbers.

How can it be growing a lot while its down 15% Y/Y ????
The whole market itself is growing - not only CPU related though if you're looking at NV. That's what I'm wondering why Intel's numbers are so horrible. Sure, AMD will be a factor in that. But can't be all of it.
 
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Markfw

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I don't want to say "I told you so" but I have been pointing out for the last year or two that Intel has terrible progress/competitiveness in server, and even desktop is weak, and I said it will eventually catch up to them. Well, this is the first evidence that I was right.
 

HurleyBird

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Apr 22, 2003
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They lost 2.5bn sales in client and 0.876bn in servers, we ll see in a few days if those amounts were captured by AMD or if it s the market that is contracting.
Yes to both, but proportionality will be interesting. My very haphazard guess is that client is mostly contraction, while server is about 50/50.
 

Asterox

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May 15, 2012
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Is this is good news, AMD is finally getting the sales its recently-great products deserve? or is it a sign of a recession?
If you look at Top500 and Top500 Green list, hm there is nothing to add.



 
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Roland00Address

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Dec 17, 2008
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I am still mourning ”the idea” of Optane. An idea that has been stillborn over the last 7 years with barely any good products to speak about, yet the promise in the idea realm was so exciting.

US taxpayer money can't come soon enough!
The house has now passed it, the senate passed it earlier a few days ago, the president was handed a note by an aid which the photographer caught on camera telling the president the House just passed it.

So yeah soon 🤣
 
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coercitiv

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Jan 24, 2014
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For anyone interested, Dr. Ian Cutress is tweeting the Q2 Financial Q&A.

Q: Reserves for Sapphire and timelines - can give more specific on SPR, not just early units but volume? How does this impact/push out EMR and GNR?
A: We're already ramping a number of SKUs of SPR starting last Q. The particular issue, wasn't affecting those SKUs, so we did another tapeout for the volume SKUs, ramping in 2H. Feel comfortable. EMR goes into the SPR platform, product is healthy for 2023.
I'm getting more and more curious as to the nature of the SPR delay, especially with this bit of info above.


and JP Morgan insists on SPR delays:
Q: Called out Intel execution issues - just SPR, or general statement? What are they - architectural, performance, customer requirements? What are you doing now vs moving forward?
A: Recovery in 3 factors: (1) TD and Manufacturing (2) Products, Meet customer demand (3) Growth. We've laid foundations, (1) is working, (2) is being worked on. Tik-Tok approach on execution.

The SPR miss, we're raising the quality bar for that, the security levels that we should have had, it was an issue we shouldn't have had.

Software release on discrete GPU wasn't up to par - iGPU software was expected to meet demands but wasnt. 4m units for GPU won't be hit. We have to be competitive on design timelines.

The products built on this new alignment are still a couple of years away.
Now I spend less time in Washington, I can focus on execution again.
This is the second time he indirectly mentions the CHIPS act, trying really hard to sell the good news.


another question on SPR:
Q: You said SPR is on time, and ramping this year, but delay, but DC pricing is slow? What's going on? Is volume in 23?
A: We said it's ramping later, main SKUs will contribute mostly next year than this year. We see opportunity in client ASP increases passing on inflation. Our competitiveness is not as strong on DCAI so can't increase pricing. Mostly ramp next year.
So SPR main contribution is 2023.


and someone finally asks Intel if they can still be trusted on future node development:
Q: Delivery of new products - while SPR is delayed is 6 mo, in the PR it noted that the later nodes are still on time or ahead of track. As outsiders, how can we judge Intel is on pace Q-to-Q rather than just your messaging?
A: Intel 7 is done, 35m units. Intel 4, MTL, looking good, broadly sampled to customers. Some have said it's as good as 3nm from others. Intel 3, updates on GNR. 20A/18A have been given updates. Foundry customers will be noted as they come on board.
 
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