On top of that, Intel CEO Pat Gelsinger has adamantly declined to discuss recent reports of a possible interest by the company in acquiring. GlobalFoundries, which the CEO of the latter denied but it is still suspicious that the boss of Intel refused to talk about it.
Intel, with bright prospects at Alder Lake for PC
Intel announces that it will ship several million Alder Lake chips to its partners in the second half of this year, which is a rather optimistic view on this and suggests that the silicon giant is neither concerned nor affected by the situation of shortage. They also said they had already shipped more than 50 million Tiger Lake chips, and yet they warned they expected a “particularly acute” chip shortage in the third quarter of this year, though they remain optimistic at this subject. raised their profit outlook for the full year to $ 73.5 billion.
Desktop PC sales for Intel grew 15% during the year, while the notebook segment is up 40% from results reported in the same quarter last year. However, those gains came at the expense of price cuts, as Intel’s median selling prices fell 5% for desktops and 17% for laptops, indicating that Intel is lowering prices for. remain competitive with AMD.
Finally, Intel’s data center group posted revenue of $ 6.5 billion in the quarter, down 9% from the previous year. Intel cited challenges from last year and a more competitive environment as the reason for this recession, a nod to AMD’s powerful EPYC processors which continue to erode their market share. Intel’s sales decline in the server segment occurred in the previous quarter, with a 20% drop in revenue.
There will be a shortage of chips in the third trimester
Intel claims to have set a new revenue record in the PC segment and gained much more share there. Intel’s ability to generate good profits on chip sales is hardly surprising as they have maintained high supply levels while other manufacturers have been hit hard by the chip shortage.
However, Intel says we will see a “particularly acute” shortage of chips for its customers (ie, they speak for themselves and not the market in general) during the third quarter. In addition, rising supply chain costs reduce their profit margins, largely because they do not pass these costs on to their customers (i.e., they do not increase prices. but assume the increases). Gelsinger said he expects industry shortages to “ease” this year, but it will take another year or more for the market to fully stabilize.
Incidentally, Intel also announced that it now manufactures more 10nm wafers than 14nm and that it has reduced 10nm manufacturing costs by 45% compared to last year, which is a great news because it could mean cheaper Intel processors for users.
