News Intel Reports Q2 2021 PC Volumes up 33 Percent, Servers Continue Decline

[Admin]

Intel reported another stellar quarter, but reduced margin forecasts and shrinking data center sales point to looming problems.

Intel Reports Q2 2021 PC Volumes up 33 Percent, Servers Continue Decline : Read more

 

[plateLunch]

Might be time to buy some AMD calls. See if I can make enough to get me a new Vermeer system. Earnings on Tuesday the 27th.

 

[vern72]

And a lot of people was counting the PC out!

 

[Howardohyea]

I'm not surprised about Intel's server/datacenter market given how good AMD systems are

I wonder what will AMD's report look like compared to Intel's

 

[InvalidError]

And a lot of people was counting the PC out!

The last year or so only had a massive bump from work-from-home surge, it'll die out within the next year as most WFH people are done setting up shop for the next several years and things return to normal for the rest of people.

 

[watzupken]

The last year or so only had a massive bump from work-from-home surge, it'll die out within the next year as most WFH people are done setting up shop for the next several years and things return to normal for the rest of people.

This is correct. OEMs are caught by surprise by the sudden surge in demand due to COVID which caught everyone by surprise too. So with all the lock downs, demand surged to all time high in recent years. But most people are not PC enthusiasts, and don't change PC often, so the hot demand is not going to sustain the test of time. And all the chip makers and analyst are predicting some red hot demand, and bumping supply like nobody's business. I suspect what is happening out of the norm is that OEMs are replenishing their inventory which was previously running low. As a result this is creating an impression of strong demand, i.e. high shipped numbers. At some point, they will be choking on too much chips.

 

[korekan]

Amd cpu is cheap. Servers nowadays mostly AMD since it has much bigger core. In a world with kubernetes, microservices, cores really count.

Yea pc only surge because there is more demand because WFH and SFM. Once the pandemic over. They will dropped so bad that PC x86 will be on the museum.

Nvidia starting arm, microsoft continue arm. Once Qualcomm join in you can have a pc with only $300 and can play lastest gen gaming smooth for FHD.

 

[Chung Leong]

Revenue for DCG went up 43% in 2020 compared to 2019. It's bound to come back down.

 

[InvalidError]

Revenue for DCG went up 43% in 2020 compared to 2019. It's bound to come back down.

Why? Datacenter and HPC have had 30-70% YoY growth for the better part of a decade. They were the fastest-growing segment for many years before covid and will pretty much certainly remain so for the foreseeable future. All of those new "client PCs" and other online devices need something to connect to.

 

[USAFRet]

Declining data center server sales could also easily be a result of more virtualization.

Replace 4x 5 year old boxes with one large one, and run the same functions in VM's.

 

[TerryLaze]

The last year or so only had a massive bump from work-from-home surge, it'll die out within the next year as most WFH people are done setting up shop for the next several years and things return to normal for the rest of people.

Covid started at the very end of 2019 with the first actions being taken at the start of 2020, there is no reason to believe that after covid is going to be worse than before covid.
Actually there was a slight decrease for intel over covid time, maybe due to added costs for logistics, maybe just by chance.
https://ycharts.com/companies/INTC/revenues

 

[TerryLaze]

Declining data center server sales could also easily be a result of more virtualization.

Replace 4x 5 year old boxes with one large one, and run the same functions in VM's.

Intel revenue by segment 2014-2023 | Statista

In 2023, Intel generated 29.26 billion U.S.

www.statista.com

Sales always go up and down, you can also see that with the general revenue shown in the other pic I posted, this new quarter is at 6.5 for data canter which is going up again, it will continue to go up and down because that's just how it goes.

 

[dalek1234]

... I wonder what will AMD's report look like compared to Intel's

I have a crystall ball in front of me. It says that AMD :

• Will beat revenue projections,
• Sold more high-margin CPUs (by taking market-share from Intel. Which we can reality deduce from this article) than previous quarter
• Slight revenue decline (or no growth) in low-margin CPUs. Which is expected since AMD is proritising production at the higher end, while Intel is desperately trying to hold on to market share by dropping prices on the low- margin, low-end products.

 

[Chung Leong]

Why? Datacenter and HPC have had 30-70% YoY growth for the better part of a decade. They were the fastest-growing segment for many years before covid and will pretty much certainly remain so for the foreseeable future. All of those new "client PCs" and other online devices need something to connect to.

There's no question that the pandemic pushed investments forward, due to spike in demand and favorable tax policies. At some point, cloud providers would run into basic physical constraints: there's no just no room for new equipment.

 

[JayNor]

"Servers continues decline" doesn't give the complete picture.

data center QoQ volumes up 12%.
QoQ revenues up 19%
QoQ ASPs up 5%

from MF transcript:
"We expect DCG to grow sequentially, achieving double-digit year-on-year growth in the second half as it accelerates through the year."

 

[InvalidError]

There's no question that the pandemic pushed investments forward, due to spike in demand and favorable tax policies. At some point, cloud providers would run into basic physical constraints: there's no just no room for new equipment.

You can fit a lot of servers in a 400' skyscraper. If there is an economically viable need, there is a way. Equipment gets periodically replaced too for increased density, improved power-efficiency and also as preventive maintenance.