News Intel loses $1.6 billion as data center CPU and foundry divisions struggle

[Admin]

Intel announces major cost-cutting plan to resize and refocus as it loses $1.6 billion on $12.8 billion revenue in Q2 2024.

Intel loses $1.6 billion as data center CPU and foundry divisions struggle : Read more

 

[AlskiOnTheWeb]

TCO of data center hardware is heavily weighted now by power cost inflation. Intel's power hungry thermally inefficient chips that they have cranked out for so long ... have finally come home to roost.

 

[DS426]

Crazy to think that Intel is so late to the [enterprise/datacenter] AI party that their DCAI segment isn't even a high point. Conversely but not surprisingly, the AI uber marketing hype has allowed them to excel in CCG. That bubble won't last and obviously the 13th-14th gen voltage debacle already has an impact on their financials and will far more greatly so for the next couple of quarters, especially as the big customers switch to AMD.

Pat bragged about regaining advance node leadership in this quarter's financials comments but then is proceeding to lay off 15% of their workforce. Once again, the determination to continue driving hard to realize long-term goals and vision is bashed by short-term goals and shareholder profit-focus. So yeah, this node leadership looks to be short-lived.

I can only hope that Battlemage will be competitive, making a little something for Intel and thus they'll continue their dGPU development as the competition is needed and definitely benefits consumers.

 

[thestryker]

Datacenter is definitely the replacement cycle and a combination of AMD's efficiency and good execution. If GNR had landed last year I'm not sure the dip would have been as bad. Now we're getting to that point where old hardware needs to be replaced and unless the accelerators Intel is providing are important AMD seems to be the only logical choice. SRF is a compelling product and CWF seems to be on a somewhat accelerated timeline (for enterprise) which leads me to believe they see a solid market there.

Realistically the way I view a lot of these issues still comes back to the way wall street works moreso than anything else. Everything that needs to be done to right the ship after years of maximizing profits over engineering is capital intensive. If there's one thing modern investing despises it is capital expenditure because the returns are never quick even if they happen to be virtually guaranteed.

 

[JRStern]

Intel has been hiding Sapphire Rapids problems (including from stockholders and the SEC), and hasn't had a fully successful new server chip in what, TEN YEARS?