Intel Corp (INTC)

[Unkwn]

Wow, your stuff seems to be really strong! Not sure if it helps with your investment decisions though.

While nobody here seems to care about actually reading the financial report of the company they are invested in, I had a look into it and try to summarize it.

Revenue flat from last year (guess you heard that already).
Gross margin down 4% from last year. Now at 56%. That's a bad one. Costs increase, maybe some pricing pressure (AMD?).
R&D spend down 7% (not sure if that's a good idea when you're losing your semi lead)
Net income down 11%, EPS down 6% (due to buybacks I suppose)
PC client group revenue is up 4% (what was the overall market growth in comparison?). PCG contains the modem business revenue, which was just shut down - don't expect better numbers next quarter!
Data center group revenue was down 6% (demand or competition from AMD?)
Even the Altera business is down 2%. Overpaid for it and then delayed 14nm projects for years - great addition to its business!

First volume 10nm processor (Ice Lake) shifted to end of the year. Originally their 10nm process was meant to be ready in 2016! That's how they lost their lead. TSMC and Samsung already moving to EUV processes.

Uh, by the way: Samsung announced to be investing 115 billion $ into next gen semiconductor fabs . That's about 10 billion per year, half of Intel's current yearly operating cash flow. If they want to compete with that level of investment, they should stop paying a dividend and buying back shares asap. That would require some guts from the CEO, though.

Units shipped in the notebook segment were down -7% QoQ, -8% QoQ for the desktop segment. That means that the revenue increase was achieved by price increases, higher ASPs. I suppose this is related to their 14nm capacity limitations, so they chose to sell higher ASP parts, but also due to more competition from AMD, which seems to jump in and sell in the lower ASP segment (while AMD competes with lower prices at comparable/better performance anyway).

The big question is: Once 10nm is up and running and Intel's capacity limitations are gone, will the OEMs, which now have partially switched their product line to AMD platforms, switch back to 100% Intel? I doubt it. AMD has its foot in the door now and Intel supported it with its 10nm failure.

But who cares? Flum will rather listen to weedtrader than to anything I have written here.