Question Intel Q2 Results

[jpiniero]

https://d1io3yog0oux5.cloudfront.net/_dc76b93ec01daad27a346504a3ae6e82/intel/news/2021-07-22_Intel_Reports_Second_Quarter_2021_Financial_1485.pdf

Pretty Meh. Revenue flat. Servers continue their slide but PC doing okay. Big increase in revenue in Internet of Things.

Desktop volume was up 15% YoY while notebook was up 40%.

 

[Gideon]

10nm is finally getting in shape:

• it finally surprassed 14nm in volume
• 50 million Tiger Lakes shipped to date
• millions of Alder Lake will ship this year

Mobileye is also doing great, might be a pretty big deal if it continues that way.

But yeah, the data center slide is significant, especially when considering AMD has quite a few more quarters before Sapphire Rapid is here

 

[Hitman928]

To add beyond those comments after a very brief look:

• Gross Margin had a good bump this quarter but operating margin down.
• ASP across x86 products continues to decrease.
• Q3 projection a bit 'soft' with Gross Margin back down again and revenue down Y/Y
• DC being down volume and ASP hurts but IoT and MobilEye growth is very strong. Will be interesting to see if they are able to continue this growth rate.
• Increase in full year revenue projection is nice, even if it is just a small amount.

Edit: ASP is actually up a little in notebooks and DC. I was looking at Y/Y which is down across the board.

 

[DrMrLordX]

But yeah, the data center slide is significant, especially when considering AMD has quite a few more quarters before Sapphire Rapid is here

It also means that Ice Lake-SP still isn't affecting Intel's DCG revenue much (if at all).

 

[IntelUser2000]

It also means that Ice Lake-SP still isn't affecting Intel's DCG revenue much (if at all).

Not necessarily. The launch quarter can have a revenue slump probably because there's a transition period. You can see that very clearly with Apple. Intel is a bit more complex. We'll have to see Q3 results.

 

[DrMrLordX]

Not necessarily. The launch quarter can have a revenue slump probably because there's a transition period. You can see that very clearly with Apple. Intel is a bit more complex. We'll have to see Q3 results.

Eh. I guess they did technically launch Ice Lake-SP in Q2 (April). So we'll see.

 

[moinmoin]

Looks like the Q2 conference call essentially disclosed Intel has to pay a penalty for the continuing slipping the Aurora supercomputer suffers, to the point that the contract now very likely has a negative profit margin.
https://www.reddit.com/r/AMD_Stock/comments/oq0odw Pretty juicy considering that's the context in which Intel is currently publicly demanding government subsidies.

 

[jpiniero]

Looks like the Q2 conference call essentially disclosed Intel has to pay a penalty for the continuing slipping the Aurora supercomputer suffers, to the point that the contract now very likely has a negative profit margin.

Would explain why Aurora didn't dump Intel.

 

[Mopetar]

Would explain why Aurora didn't dump Intel.

At some point they're basically getting a half billion dollar supercomputer for free so there's reason enough there. Also, trying to switch to AMD, IBM, or some other vendor wouldn't get them something that much sooner. It's not as though any of those companies could just magic something up in a few months.