News Intel 4Q24 Earnings Results

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Hitman928

Diamond Member
Apr 15, 2012
6,522
11,791
136
Not cancel per se, but Falcon Shores has been relegated to an internal chip with no intent to release to market. The goal is to focus on Jaguar Shores instead, which will be designed as a whole rack platform to better compete with other AI-dedicated server solutions. I honestly think it will be too little, too late. Who knows how long it will take for Jaguar Shores to be ready... and by then the key market players will have settled in.

Falcon Shores was supposed to be a reworked product to better compete in the market, so yeah, I agree with your assessment.
 

desrever

Senior member
Nov 6, 2021
272
726
106
Not cancel per se, but Falcon Shores has been relegated to an internal chip with no intent to release to market. The goal is to focus on Jaguar Shores instead, which will be designed as a whole rack platform to better compete with other AI-dedicated server solutions. I honestly think it will be too little, too late. Who knows how long it will take for Jaguar Shores to be ready... and by then the key market players will have settled in.
Fully integrated rack isn't that important in launching a product, its only good for scaling deployments, just shows they have no confidence in Falcon Shores. Who knows when they will have Jaguar Shores out.
 

DavidC1

Golden Member
Dec 29, 2023
1,362
2,222
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Intel 16 customers are of under-rated importance. Intel needs DUV external contracts to keep those fully depreciated DUV machines occupied as they move most of their internal chips over to EUV
Yea but this also depends on how much customers they have for older processes. It's all smoke and mirrors as claiming Intel 4 had external customers. Yes they did, with Ericsson, which is chump change for Intel.

So right now they have 1% of their capacity for external customers for old processes that'll back up 1% capacity for newer processes. Great job!
Falcon Shores was supposed to be a reworked product to better compete in the market, so yeah, I agree with your assessment.
Falcon Shores should have not been cancelled in the original hybrid form, so one critical explanation is that it was bad enough that it wouldn't have found success even if launched in the original format.

The DC revenue for Q3/Q4 is terrible. So Granite Rapids had very little impact. Makes sense considering they are behind 40% in the 2P form factor. It doesn't really matter at the end if it's due to immature software or flaws in the hardware and it does better in 1P. It's still significantly behind. 20% behind like in 1P, which is mediocre, but would have been received far better than 40%.

40% means that they made single-digit % advancements comparatively to when they had Emerald Rapids, while requiring a whole new socket, whole new memory standard, and much more complex packaging for a CPU on new architecture and new process.
 

branch_suggestion

Senior member
Aug 4, 2023
504
1,051
96
they forgot to do baby steps first.
it's like the anti-AMD mentality.
Precisely, in no way should you make a beyond-ret 3D package without starting on simple stacks, just as AMD did with Milan-X/X3D before MI300.
Intel did have a pipecleaner, which they canned and therefore AMD has undisputed gaming leadership and can actually make a halo mobile part, which is a pipecleaner for the really serious halo mobile part.
 

Saylick

Diamond Member
Sep 10, 2012
3,798
8,666
136
they forgot to do baby steps first.
it's like the anti-AMD mentality.
More like anti-TSMC mentality. Intel is behind, so they need to take aggressive steps to catch up. But an aggressive roadmap is also a risky roadmap, and in the world of semiconductors where you play Russian Roulette and only find out if you blew your brains out many years after you pulled the trigger, the odds ain’t good.
 

TESKATLIPOKA

Platinum Member
May 1, 2020
2,565
3,121
136
Er, what are you reading? They did a $128M loss this quarter.
This thread. Specifically what @Hitman928 posted.

GAAP shows the 18.7B restructuring charges from Q3 2024 hence massive loss. Non-GAAP without that is 600M loss.
It was 6.79B according to Intel Corporation Consolidated Statements of Income and Other Information . And even If I ignored It the operating loss would still be 4.7B, a big difference from a year ago when they still made 93M from operations.

edit: Now that I look, Foundries revenue was 17.6B but they lost 13.4B, a year before It was only 7B.
 
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reaperrr3

Member
May 31, 2024
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DCAI is so telling:

- worse margins and now even lower op income than NEX group.

- "Increasingly competitive roadmap" -> Essentially admitting it previously wasn't that competitive. Could also mean they just realised some future products wouldn't cut it and have beefed them up in specs, which could hurt margins and time to market (again).

- "Working to stabilize market share" -> Giving chips away for fairly cheap / huge rebates and sacrificing margins to keep customers, basically.

- "Strong start to x86 Ecosystem Advisory Group" -> AMD is in that too, so no real advantage over AMD, and who knows how long it'll take for that to bring tangible benefits with regard to keeping ARM at bay, if ever.
Just the fact they listed this at all means they have no other positive items to list here, which is quite telling.

they forgot to do baby steps first.
it's like the anti-AMD mentality.
I can't shake off the impression they have too much pride to just copy the good AMD stuff, even if it would help them get more competitive faster.

I mean, judging by the results, chip sizes etc., I dare say Intel still has nothing truly competitive to the chiplet/IF topology AMD has basically been using since 2019.

Intel gives off the impression of trying too hard to find some super awesome superior technology to leap-frog AMD, and as a result doesn't even catch up, because they're too prideful to just start by copying the Zen2+ approach first (assuming cross-licensing/patent agreements allow that) and then keep going from there faster with their bigger R&D budget.
 

adroc_thurston

Diamond Member
Jul 2, 2023
4,714
6,501
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More like anti-TSMC mentality. Intel is behind, so they need to take aggressive steps to catch up.
They're behind in nodes, big dawg, not really packaging.
I can't shake off the impression they have too much pride to just copy the good AMD stuff, even if it would help them get more competitive faster.
They do copy the good stuff (reluctantly), DMR+1 is just a bootleg Venice.
 
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coercitiv

Diamond Member
Jan 24, 2014
6,956
15,588
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I can't shake off the impression they have too much pride to just copy the good AMD stuff, even if it would help them get more competitive faster.

[...]

Intel gives off the impression of trying too hard to find some super awesome superior technology to leap-frog AMD
Not an impression, it is exactly what's happening. As an organization, they are too proud. Their corporate culture to deal with defeat is to plan over-complicated schemes to "leapfrog" the competition that fail to hit their target most of the time. They are the perfect example of a decaying empire ruled by shortsighted elites who only experienced winning through the sheer force of their starting position (the glory of old). They never stop to look at the underdog in the mirror.

There, I have exhausted my dose of metaphors and hyperbole for today. The cup of coffee is empty too, dang it. Time to work.

PS: Thank you @Hitman928 for making these threads, I really enjoy the commentary from you and others who take their time explain the minimum required so that folks like me can decipher the reports. Cheers!
 

DrMrLordX

Lifer
Apr 27, 2000
22,369
12,175
136
It's funny how it takes a bad earnings report to bring out so much other bad news. Okay so what if they beat some estimates? The estimates were terrible. Meanwhile Falcon Shores is dead (again!) and Clearwater Forest is delayed. The market isn't responding positively to Granite Rapids (which is not terribly surprising, since 2P Granite Rapids is not as competitive with 2P Genoa as it should be and Turin exists).

Seems like they are all in on PTL. They probably won't have capacity for CWF anyway in 2025.
What kind of capacity problems do you expect in 2025?
 

Win2012R2

Senior member
Dec 5, 2024
647
609
96
Given the importance of Intel 18A and supposedly relatively short time left till it's in high volume, I would have expected them to give credible verifiable details that process is on track rather than just saying "it's on track, nothing to see here!".
 

OneEng2

Senior member
Sep 19, 2022
385
590
106
It won’t. Intel is thoroughly screwed. They've got a singular good product (Lunar Lake).
... and my concern about Lunar Lake isn't about it being a good product, it is if Intel can make any money selling it.
It was end of 2025 previously?
H2, and many here expected Q2/Q3. I think I am going to have to take a "I'll believe it when I see it" approach from here on out.
More like anti-TSMC mentality. Intel is behind, so they need to take aggressive steps to catch up. But an aggressive roadmap is also a risky roadmap, and in the world of semiconductors where you play Russian Roulette and only find out if you blew your brains out many years after you pulled the trigger, the odds ain’t good.
Intel's "Tick - Tock" approach was well founded IMO. It was based on a steady, incremental, change one thing at a time approach.

18A and the next generation of Intel processors have really gone "all-in" and are attempting a hail Mary pass in the 3rd quarter of the game. If they manage to complete the pass, they could find themselves back in the game. If any one of a thousand things goes wrong ....

Everyone was so disappointed by AMD announcing the late introduction of Zen 6 and the relatively small single core performance improvements expected (although core counts could double).... but this may well be the future for all companies.
 

GTracing

Senior member
Aug 6, 2021
276
645
106
Everyone was so disappointed by AMD announcing the late introduction of Zen 6 and the relatively small single core performance improvements expected (although core counts could double).... but this may well be the future for all companies.
Did AMD actually announce any of this? I thought Zen6 2027 was a rumor.
 

Joe NYC

Platinum Member
Jun 26, 2021
2,790
4,102
106
Here is a tidbit from Intel call I came across:

""CCG revenue was up 9% quarter over quarter as the rate at which our customers digested inventory slowed meaningfully from Q3"

This means, sales to end users in Q4 were actually down. If "meaningfully" is 5%, then Intel client sales were down 5% in Q4.

5% + 9% = 14%, which is > $1 billion in revenue that Intel is counting that was just dumped into the channel. Without the benefit of tariff thread, Intel would have a bad Q4. The revenue would have been $13.3 in Q4, unchanged from Q3, meaning below Q4 seasonality effect.
 

coercitiv

Diamond Member
Jan 24, 2014
6,956
15,588
136
Average Joe doesn't check which product is better. He just buys a laptop or PC.
Then there is still the fact Laptops or PCs with Intel are in greater number.
Intel's strategy in the past few years was to flood the channel with chips and flush AMD out. With their increased reliance on TSMC and their dire financial situation, this is no longer sustainable: they either sell the new gen chips at reasonable prices or they lower their volumes. They can still flood the market with Raptor Lake, although this can also backfire and eat into MTL/ARL sales - where the real source of healthy revenue should be. That's the catch with using TSMC to achieve node parity, it exposes any weakness in product design and removes pricing flexibility.

Either way the competition never had more of a foot in the door than they have now. Remains to see if they take proper advantage of the situation. Knowing AMD, I would flip a coin.
 

DrMrLordX

Lifer
Apr 27, 2000
22,369
12,175
136
They can still flood the market with Raptor Lake, although this can also backfire and eat into MTL/ARL sales - where the real source of healthy revenue should be. That's the catch with using TSMC to achieve node parity, it exposes any weakness in product design and removes pricing flexibility.
There's also the question of whether the market will continue to absorb Intel 7 products at the same rate.
 
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