Yuck. Revenue down 32% and again they lost money.
CCG revenue down 36%, DCG down 33%... that in Q4 compared to previous year.
Q1 Guidance is even worse... revenue down 40% YoY.
In the event of layoffs where I work at least it's 10 months of severance pay with 12 months of health insurance. If it happens I'll bide my time and dive into some of my old hobbies and relax. I can't remember the last time I had a vacation.Yes, not good. But due to the bad server chips, and the cost of Raptor lake (DDR5 setup), I want to see AMD's results before I decide the economy is in trouble. (electronics industry)
They might in 2024 with people needing new hardware to run windows 11.I really do think Intel is truly at a do-or-die moment now and they no longer have the COVID surge in all things semi to save their ass. It's going to be a really dark tunnel ahead of them and it will be exceptionally painful going through it.
But this would mean that the server market as a whole is only maybe half of what the consumer market is...In my experience, those other players are niche and ever shrinking. HP, Dell, etc. do massive x86 volume with Intel and AMD chips. Amazon and Azure clouds use tons and tons and tons of x86 as well. Arm is coming but slow, looking at Linode & Vultr among others and it's all x86.
(In Millions) | Dec 31, 2022 | Dec 25, 2021 | Dec 31, 2022 | Dec 25, 2021 |
Client Computing | $ 699 | $ 3,795 | $ 6,266 | $ 15,704 | ||||
Data Center and AI | 371 | 2,350 | 2,288 | 8,439 |
Nah, man... stay true to your idols, double down! Or to quote a classic: just buy it!Intel (INTC) reported its Q4 2022 earnings after the bell on Thursday, missing analysts' expectations as the chip industry continues to struggle with slowing consumer and enterprise demand. What's more, the company is guiding for an adjusted loss of $0.15 per share in Q1. Wall Street was looking for a profit of $0.25 per share.
Here are the most important numbers from the announcement compared to what analysts anticipated, as compiled by Bloomberg.
Shares of Intel were off more than 5% immediately following the announcement.
- Revenue: $14 billion versus $14.4 billion expected
- Adjusted EPS: $0.10 versus $0.19 expected
- Client Computing: $6.6 billion versus $7.4 billion expected
- Datacenter and AI: $4.3 billion versus $4 billion expected
Intel's Q1 expectations aren't much better than its Q4 performance. The company said it expects revenue of between $10.5 billion and $11.5 billion. The Street was looking for $14 billion. Gross margins are also expected to come in at 39%. Analysts anticipated margins to top 45.5%.
Intel is facing a steep drop in consumer PC sales, as shoppers choose to hold on to the laptops and desktops they purchased at the peak of the pandemic. According to Gartner, Q4 worldwide PC shipments declined a stunning 28.5%, the biggest decline since the firm started following shipments in the mid-1990s.
Intel's Client Computing Group was hammered in the quarter, with revenue declining 36% year-over-year from $10.3 billion to $6.6 billion.
Intel's Datacenter and AI business also took a beating, with revenue declining 33% year-over-year from $6.4 billion to $4.3 billion.
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Intel stock is holding up pretty well given the terrible numbers, only down 5% or so! I might double down but will wait till 2nd quarter results come out to buy more!
I'm gonna tell you why I think that Pixel Pat is doing a horrific job: he speaks the average dev's language, he has the charisma and the pull, he successfully managed to revitalize the internal morale even though I thought it was impossible. BUT....... At the same time he not only just didn't recognize Intel's biggest problem by far, he actually continuously, publicly and completely relentlessly keeps doubling and tripling down on it -> bragging loudly without any sustenance, arrogantly trampling over competitors and fair investigative questions, but most moronicly by repeating the same old 'On Track' lie every week, every month and every single opportunity he can, even preparing new slides to every single occasion.I totally agree. While Raptor Lake has SOME high points, it just barely competes with Zen 4. And Zen4x3d is comping in the next 30 days ? Intel at that point will have NO compelling products in a horrible declining market (short term IMO). SR for servers can't touch Genoa, laptop is a wash, and desktop productivity is on AMDs side, and now gaming in desktop will be AMD in 30 days ????
As said above, I am not saying Intel is finished, just that YES, the next few quarters will be live or slowly die or become irrelevant.
I hate to say this, but they may trade places with AMD in the next few years. Be the underdog scratching for a place to live, in a minority.
Considering the long lead times the industry is going through until finished products can be sold publicly, Pat still has the same job as Swan in the public, essentially repeatedly having to sell an old turd while putting lipstick on a pig. I agree he's been way overdoing that. The improvements in execution should help him at one point being able to push the same messaging more earnestly and accurately. Let's hope for him that he'll still see that day and for Intel that it will come sooner rather than later.At the same time he not only just didn't recognize Intel's biggest problem by far, he actually continuously, publicly and completely relentlessly keeps doubling and tripling down on it -> bragging loudly without any sustenance, arrogantly trampling over competitors and fair investigative questions, but most moronicly by repeating the same old 'On Track' lie every week, every month and every single opportunity he can, even preparing new slides to every single occasion.
Great writing, the disappearance of honest speaking and truth in most areas have the strongest second order adverse effects. Short term thinking amplified.I'm gonna tell you why I think that Pixel Pat is doing a horrific job: he speaks the average dev's language, he has the charisma and the pull, he successfully managed to revitalize the internal morale even though I thought it was impossible. BUT....... At the same time he not only just didn't recognize Intel's biggest problem by far, he actually continuously, publicly and completely relentlessly keeps doubling and tripling down on it -> bragging loudly without any sustenance, arrogantly trampling over competitors and fair investigative questions, but most moronicly by repeating the same old 'On Track' lie every week, every month and every single opportunity he can, even preparing new slides to every single occasion.
So why is he doing a bad job even though many of the current shortcomings aren't his fault? Because the way he's - probably at least partly unintentionally - misleading the wrong people the worst possible way at every level is gonna lead to the biggest disappointment and disengagement of employees the company has ever seen.
Giving hope is awesome, but hyping stinky excrement can be near fatal -> Poor Volta could speak volumes to that from the rearview mirror. As fate would have it, the intellectual power behind that crapshow is drilling the same holes on the hull all over the place, of all the possible places, exactly at Intel... really comical 😂
Right now I'd say Pat is actively killing his company as we know it, despite having the best intentions, otherwise priceless and irreplaceable knowledge in a lot of areas, and an honest, actual corporate enthusiasm. Credit where credit's due!
Turns out Intel stock is up on Friday because of the new fab facilities being built using some infrastructure funding that was promoted on social media Revenue and earnings are not important now because there is the news of the built out of new facilities.😁👍
Turns out Intel stock is up on Friday because of the new fab facilities being built using some infrastructure funding that was promoted on social media Revenue and earnings are not important now because there is the news of the built out of new facilities.😁👍
it took so long to be able to purchase ice lake servers in quantity in enterprise space, the only thing you could get quickly was skylake based crap. I can see a situation where companies over the last Q or so have now actually been able to refresh hardware. if that is the case then at some point pent up demand will subside.Have to say that server volume only being down 16% is pretty amazing. It really should be worse.
Every major country in the world does this. Tax cuts, funding for R&D huge pay it back 'someday' loans. China is the boss of this. We are probably second. Hard to tell exactly, because the Chinese government doesn't open their books to anyone. Really, no Chinese companies should be allowed to sells stocks in western markets.Kinda like "Socialism" for the Market, Intel more specifically.
I have to agree here. I am only optimistic since Intel is so large, I can't see this going on forever, but until they get a decent server chip that doesn't burn out the power cabling in server rooms, they will still be problematic.I have been watching Intel stock for 18 months now waiting for a good entry point when I think it has squeezed out all the bad news. They just keep coming up with more bad news. I'm starting to wonder if my main assumption that Intel will eventually recover and see good times again is flawed, and there will not be a good entry point, only a falling knife.
Intel is practically bluffing, knowing fully well that the US government will not let it go under.Kinda like "Socialism" for the Market, Intel more specifically.
Intel is practically bluffing, knowing fully well that the US government will not let it go under.
Every major country in the world does this. Tax cuts, funding for R&D huge pay it back 'someday' loans. China is the boss of this. We are probably second. Hard to tell exactly, because the Chinese government doesn't open their books to anyone. Really, no Chinese companies should be allowed to sells stocks in western markets.
Any chance Intel can be broken up? Bail out the fabs for national security but let X86 stand on its own merit?
The other aspect is that we inherited a lot of products in flight. Much has been said about Sapphire Rapids and the difficulties we had in getting that out ---- So I said, “We have to flush the pipe of those projects. We have to finish them, get them done, and get the quality culture back.”