News Intel Raises Outlook by $500 Million Amid Lower Desktop Processor Sales

bit_user

Splendid
Herald
As expected following any good news, Intel's stock is currently up 6% in after-hours trading.
Didn't you ever hear the phrase "buy on the rumor, sell on the news"?

What that means is that this was unexpectedly good news. Otherwise, it already would've been priced in, and there'd even be some profit-taking.
 

InvalidError

Titan
Moderator
One year of Ryzen 2k, -9% Intel CPUs by volume which Intel still blames primarily on shortages which are forcing it to constrain supply of low-end parts, +1% in desktop income. Ryzen not making any sort of meaningful dent in Intel's bottom line is a surprisingly good result.
 

jimmysmitty

Polypheme
Moderator
One year of Ryzen 2k, -9% Intel CPUs by volume which Intel still blames primarily on shortages which are forcing it to constrain supply of low-end parts, +1% in desktop income. Ryzen not making any sort of meaningful dent in Intel's bottom line is a surprisingly good result.
Technically two years of Zen even though the first one wasn't as good as the second.

Still there is more to it than desktop sales. It might come around next year with 3 full years of stiff competition but I doubt it will be enough to do any major damage long term.
 

InvalidError

Titan
Moderator
Still there is more to it than desktop sales. It might come around next year with 3 full years of stiff competition but I doubt it will be enough to do any major damage long term.
In the corporate space (where the bulk of Intel's business lies), three years as a new entrant (AMD's effective status after ~10 years of being MIA) is barely enough to gain market traction if when you maintain a flawless track record and Ryzen launches were far from flawless. While Intel may be more vulnerable to Spectre and other side-channel exploits, I'm betting most IT pros who have reviewed the papers have concluded that the flaws are not materially relevant on desktops and most servers.
 

digitalgriffin

Distinguished
I would like to see the numbers EXCLUDING one time earnings sources like sales.

Intel is now in contraction mode. Like any business, Intel will look to sell off investments that aren't profitable (ie: 5G Modem) to keep EPS up and keep investors from leaving.

The ASP*Volume, margin numbers (Supply/demand function) and EPS is what are indicators of how bad Intel really is. Most of the indicators are down, way down. So Intel will have to continue to cannibalize itself to keep investors from leaving.
 
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