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He is on defensive. He had to post numerous posts to counter that.
If PC sales are stabilizing then server sales must be doing equally well. Only time will tell but I know that Intel is very conservative company when it comes to forecasting, it will not do so unless it is absolutely sure about it.
Does it matter any more in bigger scheme of things? It is in past and has been dealt with.
Here is one analyst raising price to $22.00 from $18.00. stock is close $30.00. What a clown. He should be calling it outright sell or avoid.
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Shares of Intel (INTC) are are up $1.97, or 7%, at $29.93, adding to last night’s after-hours gains, following Intel’s raising its forecast for revenue and gross margin this quarter and for the full year based on higher PC unit volume.
The stock has gotten several price target increases this morning, and at least one upgrade, from Drexel Hamilton’s Richard Wittington, who raised his rating to Buy from Hold, with a $35 price target, up from $28, writing that the Intel news was “A classic 2d week of June up guide.”
“Unless Iraq evolves into Hades, H2 is also necessarily higher,” he opines.” Whittington raised his 2014 view to $56 billion in revenue and 53 cents per share from a prior $54.8 billion and 47 cents.
Not everyone is delighted. Stacy Rasgon of Bernstein Research, who has an Underperform rating on the shares, raised his target to $22 from $18, but writes that it “may not be surprising to see what appears to be a spike in corporate PC demand” given the end of life in April of Windows XP.
“However, the big question now will of course be one of sustainability – while the company’s guidance suggests the spike in demand will carry forward through the rest of the year, it would not be out of line to suspect a bit of pull-forward, with associated risk of an air pocket later in the year.”
I thought you were financial wizard with accounting background. Why don't you check p yourself. Or that is too much work for you.
Very sad indeed. That fine was written off long time back. In fact it was paid off while appealing for at the same time.
That is a typical marketing response. The real response should be if ARM architecture has any real value here. As Intel is having difficult time penetrating mobile market against Qualcom, Samsung, Apple, the same applies to other in the same context.
I am not sure how these folks get jobs and then keep it for sometime. I am not sure who buys into these kind of claims.
AMD server guru leaving the company. How he was touting ARM servers a few week back.
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AMD Makes General Manager Su COO; Surprise Departure of Server Guru Feldman
By Tiernan Ray
Readers of my opus earlier this week on Advanced Micro Devices (AMD) earlier this week will be interested to know that the company today announced a shake-up of its organizational structure, with its former general manager for global business units, Lisa Su, becoming chief operating officer, replacing Robert Rivet, and with the consolidation of its “semi-custom” chip business unit into a broader “enterprise, embedded, and semi-custom business group.”
AMD shares are unchanged currently at $4.29.
Su will be the “acting lead” for that business unit, and another unit, “computing and graphics,” focusing on client computing chips, will report to her. Su will report to CEO Rory Read.
AMD said the move was designed “to create a singular, market-focused organization responsible for all aspects of product strategy, product execution, sales and operations.” The latter is headed by AMD’s head of sales, John Byrne.
Dylan McGrath at EE Times has an interesting write-up on the matter with quotes from a couple of analysts. Those individuals speculate that the company had become impatient with server chip sales declines under former COO Rivet and strategy veep Marty Seyer. Both individuals are leaving AMD, McGrath reports.
Raymond James’s Hans Mosesmann, who has an Outperform rating on AMD stock, this afternoon writes that the nomination of Su to the COO spot was “no surprise,” nor that of Byne.
However, in addition to what was announced in the release, notes Mosesmann, Andrew Feldman, who had been the brains behind the company’s server chip strategy since his startup, Seamicro, was acquired in 2012, is leaving the company.
Mosesmann thinks perhaps AMD is in a difficult spot in the server market being late to the party in developing its own custom “CPU” core for its parts, while competitors such as Cavium (CAVM) and Applied Micro Circuits (AMCC) have already rolled their own versions of ARM Holdings (ARMH) technology for server chips:
This position on paper [head of enterprise, embedded, semi-custom] should have gone to SeaMicro’s former CEO and ARM server evangelist Andrew Feldman. As such, this is a curious situation. We did confirm this morning that Mr. Feldman will be leaving AMD tomorrow (other SeaMicro founders will be staying). We would note that Mr. Feldman is known to be a passionate entrepreneur, so maybe a GM role was not part of his vision. Nonetheless, the timing is what it is, and there is no GM for this strategic unit at the moment. We speculate that AMD’s move to take an “architectural” ARM license just a month ago (meaning product hits the market in about 2 years from now) may have been a tactical mistake and perhaps a missed window of opportunity. AMD’s current ARM-based Seattle processor uses mobile off-the-shelf Cortex A57, which we view may be hard-pressed to compete against custom ARM solutions from Applied Micro Circuits (X-Gene shipping this summer), and Cavium (ThunderX sampling in 4Q14).
Also not made clear in the release is whether there is any change to the role of Saeid Moshkelani, whom I interviewed last week, and who has been running semi-custom development. I have reached out to AMD for further comment.
http://blogs.barrons.com/techtraderdaily/2014/06/12/amd-makes-general-manager-su-coo-surprise-departure-of-server-guru-feldman/?mod=BOLBlog
Intel CFO Smith Reflects on Wearables, Internet of Things, Qualcomm
By Tiernan Ray
Thursday I was at Intel (INTC) headquarters in Santa Clara where CFO Stacy Smith was kind enough to give me a few minutes of his time.
With less than a month to go before the end of the quarter, Smith sadly did not have any of his famous haiku to offer me regarding earnings. I ventured that he might give Barron’s an exclusive by offering a freestyle rap performance regarding the financial outlook, but he laughed and demurred.
Smith was upbeat as he has been in past about health in the server market for Intel’s chips.
He also mentioned wearable computing as a bright spot that will help the company return to growth. (The Street is modeling a mere 0.7% rise in revenue this year for Intel, after a 1% decline last year.)
When I pointed out to Smith that wearables so far, from what I’ve seen, did not seem much more than a fad, he tried to put some perspective on the matter.
“It’s natural with an emerging category you will see some stuff that is probably testing the waters, and maybe some other stuff that seems like it’s going to be a hit,” he said.
I asked Smith if for Intel, which has invested a lot, including the acquisition of watch maker Basis Science in March, and which has come up with some of it’s own prototypes, such as the “wireless charging bowl” shown at CES in January, there is enough volume that the chip maker can make money even on stuff that just “tests the waters,” without being a hit, and he agreed. “Yes, that is possible.”
More to the point, argues Smith, the good thing is that Intel is early in the category, will which should pay dividends.
It may be that with tablets we were not serious and not quick enough to jump on that trend.
“Wearables it is quite a different situation it’s really important.”
Smith was quick to add that wearables are just one small segment of the overall Internet of Things market. He sees the same benefits of Intel’s technology for low-power high-performance devices for the buck going into infrastructure products such as HVAC system.
“We’ve been working with people who, for example, will install an HVAC system, and then they have an opportunity to sell a monitoring service for that system, and they are going to go out more money off of that than the traditional products they would sell, and that’s using Intel’s technology,” he said.
Regarding the personal computer market, he’s optimistic it will at least not be as much of a drag to the rest of the business going forward. I asked if he saw signs of a rebound in consumer purchasing, given positive feedback this week about PCs from analysts covering the Computex computer conference. Smith didn’t outright concur, but suggested reasons why there could be better results in consumer going forward.
“You’ve got now a long gap in time, and some of those consumer PCs are getting pretty long in the tooth,” said Smith. “the last real purchasing that we saw on the consumer side was probably 2011. So, that means we’re due for a refresh.”
The way he sees it, “The consumer who goes into an electronics store looking at a personal computer versus a tablet, they’re going to see some pretty compelling reasons to buy a personal computer instead.”
“Because after all, if they’ve had those PCs now for three or four years, the difference they’re going to get buying today’s technologies, which are vastly improved, is a much bigger difference than replacing, say, their two-year-old tablet.”
I asked Smith about the company’s battle with Qualcomm (QCOM) for the mobile chip market, and his remarks were consistent with what he had told me back in February.
“We advance Moore’s Law — that’s going to be our playbook. And we’re going to bring a lot of new features across several product categories — mobile client devices, servers, Internet of Things.”
“Qualcomm obviously has a really strong heritage in communications, and they’re going to now have to invest in areas where we are strong where they don’t have as great a background,” meaning, presumably, things such as server technology.
Asked Smith what the timeframe is in which it’s chip manufacturing process technology advantage becomes blindingly obvious to everyone who doesn’t so far grasp it or believe it.
“The process will play out in different segments of the market in different time frames,” he said. Another words, no date could be offered at the moment for when that process advantage will become clearly inevitable in the market to all.
http://blogs.barrons.com/techtraderdaily/2014/06/06/intel-cfo-smith-reflects-on-wearables-internet-of-things-qualcomm/
Like I stated in another post, factory utilization is the biggest gain for Intel here along with MSS.
That will make it even harder.Intel will make money by increasing fab utilization rate and not by selling these low priced chips.
Who will be making money on this puppy? Not Intel or Microsoft.
DRAM manufacturer or Display producer only I guess.
Based on this blog, it appears Cavium has better chance than others ARM device makers for servers etc.
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Cavium: Bulls Pleased by ‘ThunderX’ Challenge to Intel in Data Center
By Tiernan Ray
Shares of chip maker Cavium (CAVM) are down $1.01, or 2%, at $47.40, despite the company this morning announcing a family of processors, called “ThunderX,” aimed at equipment for storage and networking in a variety of contexts.
Cavium claims the chips are “game changing,” combining 48 CPU “cores” on chip, in what it says are the “world’s highest performing low-power 64-bit ARMv8 SoC family of workload optimized processors.” The chips will sample to customers in Q4 of this year, Cavium said.
Cavium is among one of many hopefuls in the chip market hoping to use technology from ARM Holdings (ARMH) to challenge the server and networking empire of Intel (INTC), with other challengers including Advanced Micro Devices (AMD) and Applied Micro Circuits (AMCC).
Anil Doradla of William Blair, who has an Outperform rating on the shares, writes that “What surprised us the most from the announcement was the company’s strategy.”
“While we, like many investors, expected the announcement to be centered on server applications, the company surprised us with multiple product categories targeting the storage (ThunderX ST), networking (ThunderX NT), and security (ThunderX SC) applications.”
Doradla believes “Cavium is taking the battle to the doorstep of Intel and its Xeon processor family,” adding “we are incrementally bullish on Cavium’s prospects and believe no other processor vendor has announced such capabilities with ARM.”
Rick Schafer of Oppenheimer & Co., who has an Outperform rating on the shares, does, indeed, appear to believe it’s “game changing”:
Given the booming demand for power- and cost-efficient cloud and data center processors, we believe ThunderX could be a game-changing, disruptive technology that positions CAVM well as a portion of the data center market migrates toward ARM-based systems. We see CAVM with ThunderX as the best- positioned ARM vendor to capitalize on this opportunity to date.
Schafer quotes an endorsement from Linley Gwennap, publisher of the venerable Microprocessor Report:
ThunderX also received a key endorsement from processor expert Linley Gwennap of the Linley Group. Gwennap said, “ThunderX will enable Cavium to be the first ARM-based vendor to deliver the performance and features required by today’s volume server market at half the power and significantly lower cost compared to competing solutions.”
The news mentioned Intel name as a potential bidder. at the same time it was stated that Intel already this kind of IP. So I doubt it.
Broadcom getting out of baseband processor
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* Co says exiting unit to save $700 mln annually
* Shares rise as much as 13 pct
(Adds analyst comment, details from conference call)
By Lehar Maan and Soham Chatterjee
June 2 (Reuters) - Chipmaker Broadcom Corp said it was looking to exit its cellular baseband business, and forecast current-quarter margins to beat or be at the high end of its estimate.
The company's shares rose as much as 13 percent on Monday.
The cost-intensive cellular baseband business has been losing market share and has weighed on Broadcom's margins.
The business was "significantly unprofitable," FBR Capital Markets analyst Christopher Rolland said.
Broadcom on Monday said it would sell or wind down the business as soon as it could, saving some $700 million annually. [ID:nPn9NTHY9]
"It's overdue, but definitely good news," Ascendiant Capital Markets analyst Cody Acree said.
"We have said in 2014 wireless was make or break for Broadcom - either they share some proven success or get out of the business, or it probably cost the CEO his job."
Broadcom's chips integrating Wi-Fi and Bluetooth technology are used in Apple Inc's iPhone and other top-tier smartphones and tablets.
But its chips for low-cost smartphones have lost market share to MediaTek Inc . In the 4G long-term evolution (LTE) chip market, the company has been battling Qualcomm Inc's domination.
Stiff competition has already forced big names such as Texas Instruments Inc , STMicroelectronics NV and Ericsson out of the cellular baseband chip business.
Broadcom, which has been spending on baseband technology research and development, has seen operating profits fall at its mobile and wireless business.
Sales at the business, which fetches almost half of the company's revenue, fell 15 percent to $846 million in the first quarter ended March 31.
Broadcom said it expected to save $600 million in research and development and administrative costs annually by exiting the
baseband business, excluding an estimated $100 million reduction in stock-based compensation.
The company had reported total operating costs and expenses of $1.88 billion for last year.
Broadcom said it now expects both GAAP and non-GAAP product gross margins to be at or above the high end its forecast.
The company had estimated in April that non-GAAP product gross margin would rise by 75-175 basis points for the second quarter ending June 30 from the first quarter's 52.2 percent.
Some analysts said finding a buyer for the baseband business may be difficult.
"Those that want to be in the business are already there and are more successful than Broadcom," Ascendiant's Acree said.
"Intel Corp may be a possible acquirer but it has similar intellectual property."
Broadcom's technological roadmap had fallen behind peers like Qualcomm, MediaTek and Marvell Technology Group Ltd , FBR's Rolland said.
Finally brand name is coming with Intel processors.
It is not going to change. In a week or so, he comes back with a dell argument. He has listed it so many times that it has become a reality in his mind.
Reality is setting in for everyone else involved in this business. alternate plans are being developed.
Two articles posted by mas clearly shows that TSMC, Samsung, Global foundry are bracing themselves for real yield issues.
No one knows who is getting from TSMC as far as 20nm is concerned. There is no product available as of today.
Your own statement stated that how does any one know that KLAC is not talking about Intel.
How could it be talking about Intel? It is clearly talking of foundry business-TSMC and Samsung.
But you have right to believe what you want to believe.
Keep on dreaming. One day it will become true.
Thanks Andy. For a change you have done something nice.
You are blaming other. What has changed on your part? Same old garbage. Same old hatred and dishonesty. What a joke!
Most of your posts are double. What is happening? You must be clicking twice on submit button.
Since that time, verdict has been cut down to $100M+
You can name a few more here. But in your honest opinion, does Intel even closely matches DEC/Sperry/Burroughs/Compac.
Intel is a very conservative company from day 1.
It takes its competition very seriously. And it is not afraid to pour a lots of money in R&D. And on top of that it owns the best fabs in the world.
I see no similarity between DEC and Intel.
Agreed.
If he is smart, he won't mention words like death of Intel.
20nm took two years and 16nm will take less. I have my doubts. It will take longer as the technology gets complex and tough
I suppose it is your nap time now.
You have lost it completely. If these big firms could get rid of BK in a beat. Then how come BK was chosen despite all kind of objections from the same analysts when he Intel was looking for a CEO.
Discussions was about Chromebook and you pointed out clearly and contra revenues got lumped together by everyone else except you and chipguy and a few others.
Have you taken it seriously enough? You should be selling Intel selling short and loading up on its competitors like ARMH, QCOM, AMD.
Follow your own advice and conviction.
And the same analyst-JPMorgan probably favors stocks of those companies.
Contra revenues every one is throwing here only applies to tablets. No where it has been stated by Intel that Chromebook will have the contra revenues. These are two complete different product and design.
That is what I know and understand.
Here is one analyst who thinks Intel should give up on its mobile strategy. Majority here thinks otherwise.
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8:05 EDT - JPMorgan thinks Intel (INTC) should shut down its money-losing mobile chip business, which the firm figures could "unlock roughly $0.50 of EPS in 2015." JPM says INTC "has failed to generate material revenue or EPS from its mobile division due to the inherent disadvantages of its x86 CPUs versus ARM and low profitability of tablet/smartphone processors," and notes the mobile and communications group had a $3.1B operating loss in 2013. "Even if Intel were to gain 25% of the tablet and smartphone processor market over the next three years, we estimate it would contribute $2.8 billion (5%) revenues, but result in a loss of roughly $0.18 [cents/share]." (john.shipman@wsj.com; @jhcshipman)
BRUSSELS, May 6 (Reuters) - Europe's second-highest court will rule next month on U.S. chipmaker Intel Corp's challenge to a record 1.06-billion-euro ($1.47 billion) fine levied by EU antitrust regulators five years ago, a court official said on Tuesday.
The penalty, which represented 4.15 percent of Intel's 2008 turnover versus a possible maximum of 10 percent, came after an eight-year investigation by the European Commission which decided Intel had engaged in anti-competitive practices to block a rival.
The European Union competition authority said at the time that Intel sought to thwart Advanced Micro Devices by giving rebates to PC makers Dell, Hewlett-Packard Co , Japan's NEC and Lenovo for buying most of their computer chips from Intel.
The Commission said Intel also paid German retail chain Media Saturn Holding to stock only computers with its chips.
The Luxembourg-based General Court will rule on the case on June 12, a court official said. Intel, which can appeal to the EU Court of Justice following the judgement, wants its conviction and fine thrown out or reduced.
Here is another announcement from Intel's foundry customer.
Two announcement and two customers.
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Achronix Announces PCI-SIG(R) Compliance for Hardened PCI Express on Speedster22i FPGAs
SANTA CLARA, CA--(Marketwired - May 6, 2014) - Achronix Semiconductor Corporation today announced that its 22nm Speedster22i devices have achieved PCI-SIG(R) compliance with the PCI Express(R) (PCIe(R) ) 3.0 Specification for x8 lanes. The Speedster22i devices successfully passed the PCI-SIG Compliance and Interoperability Tests at the PCI-SIG workshop and are now included in the PCI-SIG integrators list. Based on Intel's 22nm Tri-gate technology, Speedster22i devices are the only FPGAs shipping today that contain a wide range of embedded hard IP - including PCI Express Gen3 with integrated DMA Engine, DDR3, 100G Ethernet and Interlaken.
Hardening key interface IP in the Speedster22i devices frees up a substantial portion of the programmable logic fabric, increasing the effective capacity of the FPGA and reducing the overall power consumption. Additionally the embedded hard IP in Speedster22i HD FPGAs eliminates the cost of purchasing, integrating, closing timing and testing the functions that are required when soft IP is used. The PCI Express logic cores used in Speedster22i devices support Gen 1, 2 and 3 in x1, x4 and x8 configurations and are supplied by Northwest Logic. Speedster22i HD devices are the only FPGAs with an integrated DMA engine hardened as part of the PCI Express core. This provides additional cost, performance and power advantages vs. a soft implementation.
"We embedded the Northwest Logic PCI Express IP because it is an industry-leading, silicon-proven solution," said Steve Mensor, Vice President of Marketing at Achronix. "Our customers require fully proven functional solutions and that's what we are delivering with the embedded IP in our 22nm Speedster22i devices."
"Our PCI Express IP has been successfully deployed in hundreds of applications in both hard and soft implementations," said Brian Daellenbach, President, Northwest Logic. "We are excited to see our IP play a role in the Speedster22i success story."
The Speedster22i HD1000 and HD680 devices are shipping today and have the following embedded hard IP: PCIe Gen3 x8 controllers, DDR 2/3 controllers, 10/40/100G Ethernet controllers and 12x10G Interlaken controllers. A video demonstration of the Speedster22i hardened PCI Express IP is available at http://www.achronix.com/products/videos/pci- express-demo.html.
You have been so sarcastic about Intel any way. So how does it matter if Intel discloses it or not. Customers who have seen the end products already know that. Intel own products will demonstrate that in due course.