Intel posted better than expected revenues for Q4 2019, but 2020 will be a challenging...

nanoguy

TS Addict
Staff member

Intel recently regained its title as the world's largest semiconductor vendor measured by revenue, after Samsung experienced a significant dip in sales due to an oversupply of DRAM and NAND chips, coupled with lackluster demand. But more importantly, demand for Intel's server processors is very strong and the company is selling Xeons like hotcakes to tech giants looking to bolster their data centers. Intel reported impressive earnings for Q4 2019, with revenue growing 8 percent year-over-year to $20.2 billion.

This means the company was able to beat analyst expectations of $19.2 billion, as no one expected a big 19 percent growth for the data center group. Investors were very happy with the results, sending shares up as much as 7 percent in after hours trading.

In spite of fierce competition from AMD on the consumer CPU market, the Client Computing Group posted more than $10 billion in revenue, which is a modest, two percent increase year-over-year, and higher than the expected $9.75 billion.

Memory and storage products brought in over $1.2 billion in revenue, which was a bit underwhelming but not unexpected considering other manufacturers like Samsung, Micron and SK Hynix saw an even bigger hit on that front.

Even as Intel greatly scaled back its IoT efforts, the Internet of Things Group brought in no less than $1.16 billion in revenue. All of this has made shareholders happy as they saw returns of $19.2 billion over the course of last year. For 2020, Intel expects to post a record total of $73.5 billion revenue of which $19 billion will come during the first quarter, though we'll have to wait and see if the company manages to sort out its consumer CPU supply issues.

For now, Intel is said to be using Samsung to fullfill orders for 14nm chips, and it looks like AMD still has a big window of opportunity to gain market share in the consumer space.

Intel itself wouldn't seem overly focused on beating AMD in the consumer side. CEO Bob Swan's new direction for the company means it's willing to trade dominance in traditional markets for tackling new ones that offer better growth opportunities, such as FPGAs and machine learning.

The proof is also in Intel's recent $2 billion acquisition of Habana Labs to spearhead its AI efforts, as well as the hiring of a former AMD lead executive to produce discrete GPUs. If anything, Intel is on the right course under new leadership, but it still has to play catch up in the race to 7nm and beyond.

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amstech

IT Overlord
They [Intel] still got the enterprise and large industry portfolio on lockdown, but AMD's Epyc is seriously impressive and I can see that architecture starting to change some minds.

However, for a user workstation/workplace perspective I don't see it happening anytime soon, we just rolled out (New York State I.T.S.) about 375 of 390 workstations for my area, their HP 440 G6's with Coffee Lake i5-9500 (6/6's) w/8GB RAM & PCI-X1 128 SSD's and Coffee Lake i7-9700 (8/8's) w/ 16GB RAM and PCI-X1 512GB SSD's (larger drives mostly for shared/ward use) They are more then enough to run enterprise computing, our custom cloud and custom ITS OneImage images, Office 365, PrinterLogic (which we don't really use as I have made batch files to install printers in seconds, and also batch files to import and export desktop items, favs, local docs, sticky notes and their office signature in moments/while also placing a copy on their personal network drive) and anything else you can throw at them, including specialized software, while having dozens of Office docs running.

It's not that, for example, a 8/16 Ryzen chip isn't a great solution, but for even demanding workstation applications a newer i5 is more then enough, and Intel has garnered much more trust over the years, it will take AMD years to lasso some of that to their side of the court.
 
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hahahanoobs

TS Evangelist
The market is now awake for AMD, while Intel's future looks murky, expecting much worse quarters this year.
Looking murky...

Top Foundry.
Laptops dominated CES.
Back to back record quarters following Ryzen 2 launch.
10nm yields ahead of expectation.
Stock nearing record high.
High demand for 14nm.
 
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picka

TS Booster
Looking murky...

Top Foundry.
Laptops dominated CES.
Back to back record quarters following Ryzen 2 launch.
10nm yields ahead of expectation.
Stock nearing record high.
High demand for 14nm.
All thanks to server growth and IOT. It's not encouraging to see the CEO talk as if desktops are not a priority now. Outside the 9900k they don't really offer any appealing CPUs for consumers, which has led to prices creeping up for AMD. Their top CPU is now €2K which never happened before.

Personally I prefer AMD CPUs, but having 1 dominant company is never good for consumers.
 

Puiu

TS Evangelist
They [Intel] still got the enterprise and large industry portfolio on lockdown, but AMD's Epyc is seriously impressive and I can see that architecture starting to change some minds.

However, for a user workstation/workplace perspective I don't see it happening anytime soon, we just rolled out (New York State I.T.S.) about 375 of 390 workstations for my area, their HP 440 G6's with Coffee Lake i5-9500 (6/6's) w/8GB RAM & PCI-X1 128 SSD's and Coffee Lake i7-9700 (8/8's) w/ 16GB RAM and PCI-X1 512GB SSD's (larger drives mostly for shared/ward use) They are more then enough to run enterprise computing, our custom cloud and custom ITS OneImage images, Office 365, PrinterLogic (which we don't really use as I have made batch files to install printers in seconds, and also batch files to import and export desktop items, favs, local docs, sticky notes and their office signature in moments/while also placing a copy on their personal network drive) and anything else you can throw at them, including specialized software, while having dozens of Office docs running.

It's not that, for example, a 8/16 Ryzen chip isn't a great solution, but for even demanding workstation applications a newer i5 is more then enough, and Intel has garnered much more trust over the years, it will take AMD years to lasso some of that to their side of the court.
This kind of thing takes time to change. AMD has only with this latest generation finally hit Intel at the OEM level, which are still very loyal to Intel (and Intel's money). AMD needs to not slip-up with the next 2 generations of CPUs.
 

hahahanoobs

TS Evangelist
All thanks to server growth and IOT. It's not encouraging to see the CEO talk as if desktops are not a priority now. Outside the 9900k they don't really offer any appealing CPUs for consumers, which has led to prices creeping up for AMD. Their top CPU is now €2K which never happened before.

Personally I prefer AMD CPUs, but having 1 dominant company is never good for consumers.
The priority is money. If Intel has to focus on server parts for a while that's fine with me. Better than not releasing anything new for 5 years.

Comet Lake S is due this year.
 

picka

TS Booster
The priority is money. If Intel has to focus on server parts for a while that's fine with me. Better than not releasing anything new for 5 years.

Comet Lake S is due this year.
Hmm? Why on earth should I care how much money Intel is making? What I care about is what products I can buy from them. If they don't have any relevant CPUs, which is the case at my price range, then it means AMD can push prices up.

I couldn't care less how much money Intel is making. What I want is competitive CPUs. Intel stepping back or de-prioritising consumer CPUs is not good news for consumers.
 

Shadowboxer

TS Maniac
But meanwhile on the AMD subreddit the users assure each other Intel is in some kind of desperate panic mode. Hehe.

Intel have literally never been more successful than they are now.

Of course Intel don’t really care but it would be nice if they could get back to beating AMD again just so we can shut the obnoxious AMD fans up. Reddit sums this up actually, the Intel subreddit is non existent and very boring. The AMD one is full of red Pom Pom wearing fanatics who seem to genuinely believe that a multi million dollar CPU and GPU company actually cares about them and not just their money..


P.s. I don’t care which company makes my CPU really. I’ve owned CPUs from both over the years.