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$INTC General Update: At the Red Hat Summit, Intel & Red Hat announced extensions to the On-Ramp to Enterprise OpenStack program collaboration designed to accelerate adoption of OpenStack in enterprise. The program will focus on integrating enterprise-class features that deliver high-availability and resiliency to Open Stack workloads and services.
Intel's revenue rose 4% in 4Q to $17.1Bil vs. last year. $INTC recorded an one-time tax charge of $5.4Bil due to tax reforms, which resulted in net loss of $0.7MM and loss per share of $0.15 for 4Q. Data Center Group continues to perform well for the chip maker growing 20% whereas its biggest segment Client Computing Group slipped 2% to $8.9Bil.
The battle of trio - $NVDA $AMD $INTC - over the GPU market is getting intense as Intel hired ex-head of AMD's graphics business. Intel looks to expand its high-end discrete GPU for a broad range of computing: a field Nvidia has ruled for a long time. With this battle favoring its peers, Nvidia yet again showed its strength with solid 3Q18 results.
$AMD and $INTC teams up to develop a new chip (a combintion of AMD's semi-custom GPU and a new Intel multi-chip processor), which would steal some $NVDA's GPU market share. The new product that will power lightweight laptops is designed by Intel and integrates an Intel Core processor, Radeon graphics chip, and 2nd gen High Bandwidth Memory (HBM2).
$INTC expects to reduce its spending to 30% of revenue by 2020. In third quarter, spending was down 6% vs. last year and for FY2017, direct spending is expected to be 33%. The company wants to prioritize its investments in three areas; moving ahead on Moore's Law, artificial intelligence and autonomous driving.
$INTC's 3Q data-centric businesses grew double digits (IoT revenues jumped 23%). As the PC shipments doesn't show any sign of improvement, its PC segment growth remains flat. It now expects to see high growth in IoT, AI, autonomous driving and cloud markets. $INTC expects FY17 EPS to be $3.25 and revenue of $62Bil, up $700MM from prior forecast.
$INTC reported 34% jump in 3Q profits, primarily due to strong growth in its data-centric businesses. Even though the PC segment, which brings in lion's share of total revenue, revenue was flat, it was able to post revenues of $16Bil, which is up 2%. 3Q results show that $INTC's transition from PC market to data-centric business is bearing fruit.
$INTC today unveiled its Saffron anti-money laundering (AML) Advisor for detecting financial crimes. Saffron AML is the first associative memory AI solution for the financial services sector. $INTC acquired Saffron in 2015. As per the 2017 Javelin study, approx. 15.4MM US consumers were victims of identity theft/fraud, resulting in $16Bil loss.
$INTC invested $1Bil in the artificial intelligence (AI) ecosystem to fuel adoption and product innovation. The company believes that AI will bring significant new opportunities to transform business, from retail to healthcare to manufacturing, and have an immensely positive impact on society.
Munich Reinsurance America announced that it has chosen Mobileye to provide Advanced Collision Avoidance System to its clients, which helps them to mitigate fleet collisions. Earlier this year $INTC acquired Mobileye for $15.3Bil. According to US National Safety Council, more than 40,000 traffic fatalities were reported in 2016 costing $432.5Bil.
$INTC is expanding into the fast-growing IoT (Internet of Things) and AI (artificial intelligence) markets. In IoT, the company wants to focus on four key verticals: retail, video, industrial and transportation. With Mobileye's acquisition, chipmaker wants to tap the $70Bil autonomous driving market. Acquisition is expected to be closed in 3Q.
$INTC gets most of its revenue from Client Computing Group (CCG) segment. The company earns money through sale of chips used in PC. Chipmaker will be shipping its first 10-nanometer products by end of 2017. For 2017, Intel continues to expect a mid-single digit total addressable market decline in PC segment.
$INTC expects data center (DC) server chip market to be worth $65Bil by 2021. DC segment is going to be central to its growth strategy. Intel estimates that it commands less than 40% of the total available market (TAM) today, which gives ample room for growth. In 2Q, cloud and communication services brought in nearly 60% of DC segment revenue.
$INTC announced today that former CFO Stacy Smith is retiring in January 2018. Smith has been a veteran spending 3 decades with the chipmaker. Currently Smith is heading manufacturing, operations and sales. $INTC is losing top executives, who’ve fallen short in the CEO race, joining its peers at various roles.
Chipmaker $INTC unveiled its 8th generation Core processors today. For the first time, the new generation processors will have four cores, aimed at ultrabooks. The company also claims that the new processors performance will be 40% faster than 7th generation chips. Rival $AMD is taking on $INTC with the upcoming launch of Raven Ridge processors.