Info Intel Q4 Results

[jpiniero]

https://d1io3yog0oux5.cloudfront.net/_2aeec01238f61b53b5d7e95b623c95c5/intel/news/2021-01-21_Intel_Reports_Fourth_Quarter_and_Full_Year_2020_1439.pdf

Pretty eh, Notebook volume was up 54% (!) but server sales are slumping.

Guidance for Q1 is also bad.

 

[Hitman928]

How does that change the amount of money that they make?!
Making all the money without even having to provide the best tech?! Best deal ever!
Intel's data center group increased 11% compared to last year, how is that costing intel?

AMD joins Enterprise, Embedded and Semi-Custom together meaning that console sales and cloud enterprise and data center are all together in the same pot, we do know for sure that console CPUs got a huge boost...
We have zero clue on the rest, and while I do believe that they sold better than before that alone by itself doesn't really mean much.

They spelled it out pretty clearly in the earnings call.

From the earnings call for AMD:

Now, turning to server. We had record revenue in the fourth quarter as both cloud and enterprise sales grew sequentially.

Server processor sales more than doubled year over year

Google, Microsoft, Tencent, and others continue expanding their use of EPYC processors to power larger portions of their critical internal infrastructure and the number of AMD-powered cloud instances expands. Twenty-eight new public cloud instances launched in the fourth quarter from Alibaba, AWS, and Oracle, while Google expanded general availability of their confidential computing VMs powered exclusively by EPYC processors to nine regions.

In the enterprise, adoption of AMD-powered servers grew

In HPC, the number of AMD-powered supercomputers on the November TOP500 list increased to 21 systems, including two of the top 10 and the fastest supercomputer in Europe.

Advanced Micro Devices (AMD) Q4 2020 Earnings Call Transcript (fool.com)

You can also check what other companies who support cloud infrastructure are reporting and general market reports. Again, Intel seems to be on an island with reporting a drop in sales due to an extended digestion cycle for cloud and enterprise customers.

 

[Hitman928]

Well call me as soon as this happens and maybe we'll be able to figure it out.
Up until now there is no change of average sale prices changing.

Intel's data center CPU and mobile CPU average selling prices were down 12% and 15% Y/Y respectively. Desktop was essentially flat (+1% Y/Y).

 

[jpiniero]

Intel's data center CPU and mobile CPU average selling prices were down 12% and 15% Y/Y respectively. Desktop was essentially flat (+1% Y/Y).

As mentioned Intel must have sold a ton of i3 and Atom Chromebook processors.

 

[uzzi38]

As mentioned Intel must have sold a ton of i3 and Atom Chromebook processors.

That doesn't explain the shift in data centre ASPs.

 

[TheELF]

Intel's data center CPU and mobile CPU average selling prices were down 12% and 15% Y/Y respectively. Desktop was essentially flat (+1% Y/Y).

That's q4 '19 compared to q4 '20

Over the full year, annual report, it's -3% avg. price with 11% volume gain and -6% avg price with 28% volume gain

 

[jpiniero]

That's q4 '19 compared to q4 '20

Over the full year, annual report, it's -3% avg. price with 11% volume gain and -6% avg price with 28% volume gain

That's because the shift from Intel to AMD in servers didn't start until the second half of this year, and only really got going last quarter.

 

[chrisjames61]

That's because the shift from Intel to AMD in servers didn't start until the second half of this year, and only really got going last quarter.

And it is only going to accelerate and eventually hit critical mass. The Elf doesn't seem to get what inertia and momentum are. They are extremely difficult to stop let alone reverse.

 

[TheELF]

And it is only going to accelerate and eventually hit critical mass. The Elf doesn't seem to get what inertia and momentum are. They are extremely difficult to stop let alone reverse.

It has to become momentum first...
Numbers always fluctuate from one quarter to the other ,for any company, it has to be going on for a while first before you can call it a trend.

 

[uzzi38]

It has to become momentum first...
Numbers always fluctuate from one quarter to the other ,for any company, it has to be going on for a while first before you can call it a trend.

Intel's ASPs in DC were extremely low in Q3 as well. 32% according to their slides.

Intel's guidance suggests 1Q21 will be no better either. How long do you believe we need to see this sort of trend until it becomes "momentum"?

You don't even need to consult the financials to know what's happening.

Just by having EPYC available in the market has forced Intel to become extremely competitive in pricing.

Pat Gelsinger Vows Intel’s Comeback As AMD Hits Server Biz | CRN

Incoming Intel CEO Pat Gelsinger vowed to restore the chipmaker's manufacturing prowess as its data center business gets hit by AMD's growth in servers.

www.crn.com

 

[Abwx]

Intel's ASPs in DC were extremely low in Q3 as well. 32% according to their slides.

Intel's guidance suggests 1Q21 will be no better either. How long do you believe we need to see this sort of trend until it becomes "momentum"?

You don't even need to consult the financials to know what's happening.

Just by having EPYC available in the market has forced Intel to become extremely competitive in pricing.

Pat Gelsinger Vows Intel’s Comeback As AMD Hits Server Biz | CRN

Incoming Intel CEO Pat Gelsinger vowed to restore the chipmaker's manufacturing prowess as its data center business gets hit by AMD's growth in servers.

www.crn.com

According to this article and financial datas published these days Intel expect AMD to reach 20% servers market share during Q1 2021...

That s remarkable that Intel can still hold 80% using an outdated products portfolio that is late on about every metric that matter.

 

[scineram]

That seems wildly unrealistic.

Also not seeing it in the article.

 

[Topweasel]

I was watching a few things last year. The idea was that there were dozens of small parts in the large enterprise DC's that any kind of major switch in vendors required something like 200% perf improvement for the price before they could do any wholesale transition. So they could get AMD for completely new projects and systems that are not very vendor sensitive. But most system upgrades would be Intel purchases unless until they basically had no choice or the grunt of the AMD made up for the deficiencies or the amount of work it would take to optimize for the new platform.

That is the kind of stuff on top of Intel's ability to sweeten the pot and provide after sales support and implementation that will slow AMD's transition into the market. But also its just availability. AMD hasn't even released Rome or TR5k and they are stretched. AMD can't sell on the level some companies want to buy because of the impact it would have on all the other companies they deal with. It might not make sense but AMD wouldn't want lets say Lenovo to be able to buy the volume they might want if the result is that they are just a single client supplier.