10nm is great, but so is $19.2 billion

Subject: General Tech | October 26, 2018 - 03:41 PM |
Tagged: quarterly earnings, Intel

Intel's earnings do not seem to have been hurt by their lack of 10nm processors nor the departure of Brian Krzanich, their revenue is up 19% from this time last year and represents the best quarter they have ever had.  Of that $19.2 billion in income, net income was $6.4 billion; no wonder they could afford to take Ryan away! 

The two stand out business units were the Intel Data Center Group and the relatively new IoT division, signifying their plan to prioritize data center products is fairly effective at producing profit.  The Register has more detailed breakdowns on the numbers here.

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"On a conference call for investors, Swan said, "This quarter was the best in our 50-year history," adding: "We expect 2018 to be the best year ever, and our third record year in a row."

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Source: The Register

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October 26, 2018 | 04:06 PM - Posted by elites2012

when you raise the prices of your products to cover the loss in sales, you bound to make a profit. its called price gouging.

October 29, 2018 | 09:19 AM - Posted by Anonymouse (not verified)

Intel's wholesale prices have remained static. Retailer prices have risen due to demand exceeding supply.

October 31, 2018 | 04:27 PM - Posted by Anonymouse (not verified)

I would say its more of a supply issue than a demand.

October 26, 2018 | 05:02 PM - Posted by BillR (not verified)

Intel's advantages are the amount of support they give to customers and the vast scale they operate at in the market. Services that some customers are willing to pay more for, however reluctantly.

AMD makes good products and they will only continue to build market share as long as they offer their customers an advantage in the market. Time will tell if AMD stumbles again, or if they continue to make steady gains. My bet is that they continue to improve and they've learned important lessons in how to compete as they build the size of the organization they need to effectively compete with Intel.

October 26, 2018 | 05:24 PM - Posted by ColossalCollapse (not verified)

The Inquirer? That didn't register... ;-)

October 26, 2018 | 05:51 PM - Posted by Jeremy Hellstrom

LOL, good catch.  Thanks!

October 26, 2018 | 06:07 PM - Posted by StockMarketsGoneInsanelately (not verified)

Chip stocks are taking a beating and Intel was at around $57 on June 1 of this year and is currently at $46. AMD is way down in the short term but on June 1 was only selling at $14.40 and is now at $17.63. Nvidia was at 257 June 1 of this year but has dropped to $198.29 as of today's market close with Nvidia way off of its Oct 1 high of close to $290. The last 5 days have not been good for chip stocks all around with only Intel staying relatively the same and not showing as much movement upwards or downwards over the past 5 days.

The current tariffs are 10% but are scheduled to jump to 25% come Jan 2018. And look at this headline(1) coming from Barrons on Oct 25. And that's not such good news industry wide if the investment community is now targeting lower expectations across the entire processor market of CPU and GPUs makers mostly as well as the semiconductor makers like TI and others that supply power regulator/other MB/GPU card IC components. AMD's fundamentals are very sound and Intel/Nvidia are earning massive revenues but the stocks are not doing so well in that face of the Trade Wars and maybe Inflation and other destabilizing factors.

That Intel CPU SKU shortage is actually helping Intel's gross margins go up to the 94% range mostly from those higher margin server market sales that Intel still controlls currently. AMD's Epyc sales and Professional GPU Radeon WX/Radeon Instinct sales are most responsible for AMD Gross Margins hitting the 40% metric this quarter. So higher gross margins all around from the server market's rapidly increasing quarterly and yearly TAM numbers that have been rapidly rising over the patst 18 months and lifting everone's server boats higher.

It looks like all those corporate tax breaks unleashed trillions in investment dollars that spilled over into chip stock investments as that money had to be invested someplace as a hedge against inflation. But some fears are now forcing many to pull their investment exposure out of chip stocks and into other investments. It's probably a combination of Tariff fears and The Fed raising interest rates among other factors but it's not a rational period of time for the stock market and the chip industry that is seeing billions in lost market cap lately.


"Nvidia’s Stock Price Target Is Cut After AMD’s Weak Earnings Outlook"


October 27, 2018 | 05:42 AM - Posted by chipman (not verified)

Intel's Perspective is great and the margin fat!

How long should we wait before seeing silicon-germanium processor @10 GHz? Did Donald TRUMP secure canadian germanium supply? :-D

October 29, 2018 | 08:03 AM - Posted by Luis Ferreira (not verified)

The problem is, the only way now is down

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