INTEL BURN TEST RESULTS PC
INTEL BURN TEST RESULTS MAC

INTEL BURN TEST RESULTS PC

Although this was no surprise given the very easy comps from last year (last year was the reverse with the PC saving Intel's Q1), and revenue did decline about $0.5B from last quarter's all-time record, but overall this should be considered a solid quarter. As a reminder, Intel basically told investors at the February Investor Meeting that it is building three 11-figure (>$10B) businesses from scratch (Mobileye, foundry and graphics), while also growing the data center and network/edge at double digits.ДЇirst, people have been telling us that AMD has 'open season' in the data center for the next few years, yet DCAI (cloud + enterprise + FPGA + Habana) grew 22% to $6B. Again, this isn't Intel's growth engine so no single investor is (or should be) buying Intel for its PC business. More to the point, I would claim that I can 'predict' Intel's PC revenue 20 or even 200 years from now: it will still be about $40B (inflation adjusted), give or take. Intel's luck has to end at some point, and it seems that will be this year.

INTEL BURN TEST RESULTS MAC

Note that Intel delivered six consecutive record PC years in a row despite the Apple ( AAPL) Mac and modem losses and AMD's ( AMD) resurrection. However, as I have repeated ever since I first started covering Intel (and also repeated in my Q1 preview), the PC will never become a real, systematic growth engine. (Intel had warned investors about this last quarter.) This year, the usual seasonality (after the holidays) kicked in again, combined with inventory burn. Looking under the hood, we can see that the culprit for the mediocre results was the PC with a decline of 13% on tough comps a year ago as the world was scrambling to buy PCs for learn and work from home. In addition, Intel had a further $0.7B headwind from a Q1'21 prepayment. The only reason people talked about a 'decline' was because Intel lost $1B in NAND revenue. I am not going to nitpick myself, so from my view Intel's revenue in reality was flat for all intents and purposes. If it isn't the revenue growth, then it is the gross margin, or else it is the cloud or PC.ДЇirst and foremost, the criticism I mostly saw was that Intel revenue declined. So as expected (see the risk paragraph in my Q1 preview), this quarter was no different. When it comes to measuring Intel, investors use a microscope that provides an even stronger magnification than what Intel uses to inspect its transistors. It is amazing to see what lengths people always go to in order to find things to be upset about in Intel's earnings results. What they found this time was utter nonsense in my opinion, as the stock declined on light Q2 guidance despite Intel reiterating full-year guidance. However, people always seem to go out of their way to find even the slightest blemish in Intel's results in order to send the stock down. Intel ( NASDAQ: INTC) had a solid in-line quarter that didn't change anything about what anyone knew about the company - hardly surprising after February's Investor Meeting. RobsonPL/iStock Editorial via Getty Images Investment Thesis

Intel burn test results