News Intel lost $16.6 billion in Q3, reports $13.3 billion in revenue

[Admin]

Restructuring charges and new products ramp deepen Intel losses to $16.6 billion as products group remain profitable.

Intel lost $16.6 billion in Q3, reports $13.3 billion in revenue : Read more

 

[thestryker]

When they were talking about Gaudi they mentioned that they had a harder time with software migration than expected which impacted sales. Seems they're banking on the Gaudi 3 rollout and contract with IBM to push sales up over here.

Spoke a bit about PTL and NVL saying 70% of silicon is in house, so just a wild guess on my part: GPU tile still TSMC (I'm hoping they aren't being shady and counting interposer).

LNL sounds like a one off part as not only did using TSMC hurt the margin but the on package memory was singled out. They mentioned no parts with on package memory on the road map. LNL did turn out better than expected so the order from TSMC was tripled.

They overbought equipment for Intel 7 during the pandemic which was part of the write downs.

information from (a lot of analysis and more information here too):

• https://morethanmoore.substack.com/p/intel-q32024-financials-halloween
• https://nitter.poast.org/IanCutress

 

[ekio]

Karma for milking us as bad as they could without providing any innovation before ryzen came out hits strong.

 

[TheOtherOne]

And if we dig deeper into the books, we might find the CEOs and higher Executives still got hefty "bonuses" since those are based on the revenue! 😉

 

[Elusive Ruse]

When they were talking about Gaudi they mentioned that they had a harder time with software migration than expected which impacted sales. Seems they're banking on the Gaudi 3 rollout and contract with IBM to push sales up over here.

Spoke a bit about PTL and NVL saying 70% of silicon is in house, so just a wild guess on my part: GPU tile still TSMC (I'm hoping they aren't being shady and counting interposer).

LNL sounds like a one off part as not only did using TSMC hurt the margin but the on package memory was singled out. They mentioned no parts with on package memory on the road map. LNL did turn out better than expected so the order from TSMC was tripled.

They overbought equipment for Intel 7 during the pandemic which was part of the write downs.

information from (a lot of analysis and more information here too):

• https://morethanmoore.substack.com/p/intel-q32024-financials-halloween
• https://nitter.poast.org/IanCutress

They have been lying about Gaudi for a long time:

Gelsinger touted the $1 billion figure in public. On Intel’s July 2023 earnings-results call, he told analysts of “surging demand for AI products.” He added: “Our pipeline of opportunities through 2024 is rapidly increasing and is now over $1 billion and continuing to expand with Gaudi driving the lion's share.”
According to one of these sources and another person briefed on the matter, Intel at the time of Gelsinger's announcement had not secured anything near the supply needed from TSMC to sell $1 billion in AI-accelerator chips. After Gelsinger demanded the billion-dollar target, Intel tweaked its math to justify it, lumping in chips unrelated to its marquee AI offering, two sources said.

As recently as January of this year, Intel told investors it had more than $2 billion in possible AI chip deals in the pipeline. In April, Gelsinger revealed to analysts a much lower AI revenue goal for this year: more than $500 million.

https://www.reuters.com/technology/inside-intel-ceo-pat-gelsinger-fumbled-revival-an-american-icon-2024-10-29/

 

[tom2tec]

Classism leads to corruption which breeds incompetence.

 

[Mattzun]

The revenue info is shown twice in the first chart
Is the second copy supposed to show expenses?

 

[vanadiel007]

I am thinking they are going to have a hard time recovering from this. I expect more restructuring in the common months, more cutting in order to shore up costs.

I think they are going to have an uphill battle this time, because the market is highly competitive and they have no competitive edges in any of the markets right now.

Their latest CPU's are underwhelming, their GPU's are underwhelming, they are loosing market share in the server market fast, server market is more about GPU than CPU power these days, and they are unable to capitalize on the emerging AI market bubble.

Their best bet of survival would be forming an alliance of some sorts.

 

[bit_user]

Intel's Data Center and AI Group (DCAI) earned $3.3 billion in revenue, up both sequentially and year-over-year, which is much-needed good news for the company. The unit's operating margin rose to 10.4%, but its operating profit remained at just $0.3 billion, which is surprising as the company began to ship its high-margin Xeon 6 data center CPUs.

Sierra Forest and Granite Rapids got a slight jump on AMD's Turin, but Turin is cheaper and managed a commanding lead over the 128 P-core Xeon 6980P, core-for-core:

https://www.phoronix.com/review/amd-epyc-9965-9755-benchmarks
​

Intel reduced the gap vs. the previous generation, but it's still sizeable and some of their biggest customers (Amazon, Microsoft, Google) now have in-house ARM CPUs. If Intel doesn't jump on the ARM bandwagon soon, it could plausibly find itself fighting for mere table scraps of the cloud/datacenter market.

 

[Samlebon2306]

Boeing, Intel... next? Apple?

The demolition of the American Empire is underway.

 

[JamesJones44]

The headline number (lost 16.6 billion) isn't exactly what it looks like. There are two, one time charges for separation packages (layoffs) and impairment charge largely around equipment write downs. When you factor those two accounting tricks out their net income was actually 1.7 billion.

It's still a bad quarter without a doubt, but the headline number makes it look a lot more dire than it really is.

 

[JamesJones44]

Boeing, Intel... next? Apple?

The demolition of the American Empire is underway.

Yeah, it's not like Nivida and AMD aren't the cause of Intel's fall. Oh wait, those are both in the American "Empire". Guess you gotta rethink that thought...

 

[bit_user]

The demolition of the American Empire is underway.

It's not demolition, it's being eaten alive by the investors. Probably will be blamed on China, though.

Yeah, it's not like Nivida and AMD aren't the cause of Intel's fall. Oh wait, those are both in the American "Empire".

Give it time. Nvidia's divedends aren't anything like what Intel's were. AMD never paid out dividends. Once their growth rate slows, they will start issuing (or increasing) dividends and the rot will take hold.

Google recently started paying out a dividend.

 

[bit_user]

LNL sounds like a one off part as not only did using TSMC hurt the margin but the on package memory was singled out. They mentioned no parts with on package memory on the road map.

Oof. Then they'd better watch out, because AMD is following Apple and actually scaling up their on-package memory.

 

[JamesJones44]

Give it time. Nvidia's divedends aren't anything like what Intel's were. AMD never paid out dividends. Once their growth rate slows, they will start issuing (or increasing) dividends and the rot will take hold.

Google recently started paying out a dividend.

For sure, that seems to be the first thing public companies do once their earnings growth slows down enough to affect stock growth. Divs and large buybacks (Apple for example)

 

[thestryker]

Intel reduced the gap vs. the previous generation, but it's still sizeable and some of their biggest customers (Amazon, Microsoft, Google) now have in-house ARM CPUs. If Intel doesn't jump on the ARM bandwagon soon, it could plausibly find itself fighting for mere table scraps of the cloud/datacenter market.

I not convinced this shift is about Arm, but rather with getting customized chips. In the past when Intel did custom Xeons the changes were typically rather minimal, but with tiles there's more potential today. I'm really curious what this custom Xeon 6 they're doing for Amazon looks like.