Intel Reports Second-Quarter 2018 Financial Results

DooKey

DooKey

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Intel presented their 2Q financial report today and they hit it out of the park. 2Q18 revenue was $17B and that was up 15% YoY. Net income was $5B up 78% YoY. Earnings per share $1.05 up 82% YoY. Their data-centric market provided 49% of the revenue and PC-centric provided the other 51%. Based on these numbers I'd have to say news of their death was exaggerated. You can download the PDF of their report here.
 
DigitalGriffin said:
Takes a lot of new servers when you take a 20% performance hit due to bugs in your hardware.
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Not sure how much sarcasm is thsre, but I really think spectre/meltdown kicked off hardware upgrade cycles in alot of institutions.
 
Yeah. Big Blue still raking it in. They are dead to me though!

No problem putting together used price performance Intel boxes but until the next arch I won’t buy new Intel for personal use.

Too many shenanigans lately and AMD is a real alternative again.
 
brucethemoose said:
Not sure how much sarcasm is thsre, but I really think spectre/meltdown kicked off hardware upgrade cycles in alot of institutions.
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I was being quite serious.

First you have to wait for the patch if you have an older gen CPU. If you are running sandy bridge, you might as well put it out to pasture. I know I will never see an UEFI update for my setup and it's newer than sandy bridge and < 5 years old.

Second, a 20% loss is a pretty big deal and servers near their load limit will have to be augmented.
 
With reports like this, Intel will gladly overcharge on their products without a hint of any true price reductions.
 
brucethemoose said:
Not sure how much sarcasm is thsre, but I really think spectre/meltdown kicked off hardware upgrade cycles in alot of institutions.
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Is that why they keep announcing more and more of them? Their segmentation game is second to none.
 
They charge $10K for the Xeon platinum 28-core cpu. Businesses want to save money, 10K is a lot of money. When AMD releases the 32-core Threadripper at $1500 won't Intel be bleeding? Intel will slash prices? It's a monolith cpu. I bet Jim Keller is going to help Intel design the Intel version of the 'Infinity Fabric'.
 
AMD just needs to figure out how to close the gap on IPC with intel. But damn thats a sick amount of earnings
 
TheHig said:
Yeah. Big Blue still raking it in. They are dead to me though!

No problem putting together used price performance Intel boxes but until the next arch I won’t buy new Intel for personal use.

Too many shenanigans lately and AMD is a real alternative again.
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It's almost unequivocally untenable to recommend higher end INTEL procs over AMD right now for personal/home users. With the ready availability of upgradeable chipsets, and the price/core/performance metrics becoming lopsided, it's a shame we don't have an even playing field for our processor wars. The unending stagnation from INTEL still hasn't trickled down to their shareholders, which honestly means that we may never see them distance AMD again anytime in the next 5+ years. With their marketing, product placement, and brutal sales tactics in both server, OEM, and cloud markets, AMD may gain some minor market share, but it will be hard fought essentially trying to dethrone a monopoly known for its ruthless tactics. Really makes me sick.
 
dgz said:
Is that why they keep announcing more and more of them? Their segmentation game is second to none.
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Maybe.

I've actually heard there's an uptick in older processor sales though. People/departments who bought 1P servers with 2P motherboards are slapping another processor inside.
 
oopspowsurprise said:
They charge $10K for the Xeon platinum 28-core cpu. Businesses want to save money, 10K is a lot of money.
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Yes, it is a lot of money. It is also a fast chip.

oopspowsurprise said:
When AMD releases the 32-core Threadripper at $1500 won't Intel be bleeding?
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No. One is a top chip for 8P server. The other is a HEDT chip.

oopspowsurprise said:
I bet Jim Keller is going to help Intel design the Intel version of the 'Infinity Fabric'.
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Keller joins as a technical manager. Moreover Intel already has the technology, it is named AIB (Advanced Interface Bus) and just now pushed as standard for DARPA initiative

https://venturebeat.com/2018/07/24/...us-for-research-agencys-computing-initiative/
 
Things are changing in the server world, I know our IT department at the city has decided to green light AMD Servers. It goes before council for approval since it's several million dollars of investment, Intel may start seeing a regression in profits as AMD takes a bigger share of the server market away. No doubt tho that one needs the market share and the other will do just fine with a lower share.
 
Gideon said:
No doubt tho that one needs the market share and the other will do just fine with a lower share.
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AMD could sell out everything it could make for years on end, they'd never be able to replace but a fraction of Intel's capacity.
 
heatlesssun said:
I get that. There's only so much market share AMD could capture under present circumstances.
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What circumstances are those? EPYC is a huge game changer, in a market that is completely saturated with security holes, being fixed with patches that severely diminish performance. Seems like AMD has a grand opportunity to do some damage, especially with Intel choosing to focus heavier on storage rather than CPU.
 
alxlwson said:
What circumstances are those?
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How many CPUs can AMD make vs. Intel? Intel's revenue was nearly 10 times that of AMD this quarter. Intel makes a LOT more CPUs. I'm not slamming AMD I am simply pointing out that it's physically impossible for them to take a lot of market share from Intel unless they were able to make a shit ton more CPUs than they currently make.
 
Gideon said:
Things are changing in the server world
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Since 2016 I am reading about how EPYC is going to take the server market. Still Intel's datacenter group just reported 24% revenue grow. This was Intel's third consecutive quarter above 20% growth.
 
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juanrga said:
Since 2016 I am reading about how EPYC is going to take the server market. Still Intel's datacenter group just reported 24% revenue grow. This was Intel's third consecutive quarter above 20% growth.
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Which is why they never get any faster
 
I work in Datacenters.
This week we received ~100 2P servers, all of them Intel and we have no plans to change that.
AMD might be in the focus of private PC users, but in enterprise...not so much.
 
juanrga said:
Since 2016 I am reading about how EPYC is going to take the server market. Still Intel's datacenter group just reported 24% revenue grow. This was Intel's third consecutive quarter above 20% growth.
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Factum said:
I work in Datacenters.
This week we received ~100 2P servers, all of them Intel and we have no plans to change that.
AMD might be in the focus of private PC users, but in enterprise...not so much.
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I think they'll gain more traction the 2nd time around, when Epyc is a more proven platform and has a significant performance advantage over Xeons for a couple of months at least.


But yeah, I'm not sure how people think AMD will bust Intel's datacenter market share. They might put a tiny dent in it (which is still alot of money), but that's it.
 
brucethemoose said:
I think they'll gain more traction the 2nd time around, when Epyc is a more proven platform and has a significant performance advantage over Xeons for a couple of months at least.


But yeah, I'm not sure why people think they'll busy Intel's datacenter market share. They might put a tiny dent in it (which is still alot of money), but that's it.
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I predict that we buy zero new servers in 2018 with AMD CPU's FYI.
 
juanrga said:
Since 2016 I am reading about how EPYC is going to take the server market. Still Intel's datacenter group just reported 24% revenue grow. This was Intel's third consecutive quarter above 20% growth.
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Folks around here want to hate Intel (and sometimes for good reason), and they want AMD taking over to be true. Unfortunately, that's not what the reality is.
 
Factum said:
I predict that we buy zero new servers in 2018 with AMD CPU's FYI.
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Well yeah, this year.

In 2019, Epyc V2 will likely (and briefly) have the absolute performance crown, and won't be an iffy beta platform like now.
 
brucethemoose said:
Well yeah, this year.

In 2019, Epyc V2 will likely (and briefly) have the absolute performance crown, and won't be an iffy beta platform like now.
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DC is more than performance...I don't think AMD will be in our DC's in 2019/2020 either...
 
Factum said:
I work in Datacenters.
This week we received ~100 2P servers, all of them Intel and we have no plans to change that.
AMD might be in the focus of private PC users, but in enterprise...not so much.
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I think a lot of people bummed by the news that AMD isn’t making waves in the DC space isn’t aware of the head managers not swayed by AMD’s past flaky platform. It’s buggy, has it quirks, it works but there is a lot of variables to consider when you have to babysit certain steps integration where as with Intel it’s mostly plug’n’play. Plus you have the assurance of the intel platform.

I bet AMD will carve out their server center presence but they need more than one solid release to convince the big players it’s worth investing in their product.
 
Trimlock said:
I think a lot of people bummed by the news that AMD isn’t making waves in the DC space isn’t aware of the head managers not swayed by AMD’s past flaky platform. It’s buggy, has it quirks, it works but there is a lot of variables to consider when you have to babysit certain steps integration where as with Intel it’s mostly plug’n’play. Plus you have the assurance of the intel platform.

I bet AMD will carve out their server center presence but they need more than one solid release to convince the big players it’s worth investing in their product.
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In order for us to start thinking of using AMD CPU's...they need to have like a +10 year track record of beating Intel (And NOT just in "performance in a single metric"...we have a lot of other important metrics)...I doubt that will happen though...but I could be surprised.
 
brucethemoose said:
Well yeah, this year.

In 2019, Epyc V2 will likely (and briefly) have the absolute performance crown, and won't be an iffy beta platform like now.
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How do you know? It seems evident that even CascadeLake AP will take the performance crown. It's not random that it is specially focused towards HPC.
 
alxlwson said:
What circumstances are those? EPYC is a huge game changer, in a market that is completely saturated with security holes, being fixed with patches that severely diminish performance. Seems like AMD has a grand opportunity to do some damage, especially with Intel choosing to focus heavier on storage rather than CPU.
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As someone with 25+ years of IT experience, I can say that most people don't understand how conservative senior IT management is. While *I* would purchase Epyc boxes, it remains to be seen if corporate IT management will buy AMD servers en masse. I can tell you that when Opteron was competitive and even superior to the Xeons of the time, it didn't significantly dent Intel's market share. From my own anecdotal experience, I only saw Opteron servers being used in lower-level environments. Epyc has a tough hill to climb.
 
IndyColtsFan said:
As someone with 25+ years of IT experience, I can say that most people don't understand how conservative senior IT management is. While *I* would purchase Epyc boxes, it remains to be seen if corporate IT management will buy AMD servers en masse. I can tell you that when Opteron was competitive and even superior to the Xeons of the time, it didn't significantly dent Intel's market share. From my own anecdotal experience, I only saw Opteron servers being used in lower-level environments. Epyc has a tough hill to climb.
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Didn't AMD had supply problems then?
 
Montu said:
Intel presented their 2Q financial report today and they hit it out of the park. 2Q18 revenue was $17B and that was up 15% YoY. Net income was $5B up 78% YoY. Earnings per share $1.05 up 82% YoY. Their data-centric market provided 49% of the revenue and PC-centric provided the other 51%. Based on these numbers I'd have to say news of their death was exaggerated. You can download the PDF of their report here.
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And there goes any hope that Intel might adjust their incremental improvement strategy in light of the fact they have real competition in the consumer PC space. When you flop and still make money, hand-over-fist, you have a real hard time believing your crap actually does stink.
 
spugm1r3 said:
And there goes any hope that Intel might adjust their incremental improvement strategy in light of the fact they have real competition in the consumer PC space. When you flop and still make money, hand-over-fist, you have a real hard time believing your crap actually does stink.
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Intel the last ~10 years has been doing GREAT strides in DC (I suppose there is a lot higher profit margin per unit in enterprise than in the consumer market) so your comment is a bit misplaced.
You need to observe other metrics than gaming..or you will delude yourself into that progress has slowed down.
DC has been fra from incremental...to give you a hint...a 2P Intel Gold server beats a 4P E7-8880v4 server:
https://hardforum.com/threads/intel...-lineup-leaked.1928015/page-2#post-1043060796
 
Factum said:
Intel the last ~10 years has been doing GREAT strides in DC (I suppose there is a lot higher profit margin per unit in enterprise than in the consumer market) so your comment is a bit misplaced.
You need to observe other metrics than gaming..or you will delude yourself into that progress has slowed down.
DC has been fra from incremental...to give you a hint...a 2P Intel Gold server beats a 4P E7-8880v4 server:
https://hardforum.com/threads/intel...-lineup-leaked.1928015/page-2#post-1043060796
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I did say "consumer PC". I'm not ignorant to the diversification of Intel's business model, I just had hopes that a legitimate performance threat from AMD would make Intel do something other than heavy marketing on marginal increases to sell their products in the consumer space.
 
spugm1r3 said:
I did say "consumer PC". I'm not ignorant to the diversification of Intel's business model, I just had hopes that a legitimate performance threat from AMD would make Intel do something other than heavy marketing on marginal increases to sell their products in the consumer space.
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More than 50% performance increase from Kabylake to CoffeeLake is marginal increases?
 
Gideon said:
Things are changing in the server world, I know our IT department at the city has decided to green light AMD Servers. It goes before council for approval since it's several million dollars of investment, Intel may start seeing a regression in profits as AMD takes a bigger share of the server market away. No doubt tho that one needs the market share and the other will do just fine with a lower share.
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We all went AMD at one time in the datacenter and lived to regret it. Not saying it won't be different "this time" (noting, we have not decided to take the gamble).
 
for large existing setups using intel, its hard to bring in new AMD based servers. You very much have to take into account service and support of those machines. the greater the number of varying machines, the hard it is.
 
juanrga said:
More than 50% performance increase from Kabylake to CoffeeLake is marginal increases?
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In terms of IPC you are looking at a couple percent at best. While I do appreciate more cores, you aren't getting any real improvement per thread. Not that many apps thread well across multiple cores. And you pay through the nose for those extra cores.

So the only benefits to more cores is if you do heavy multi tasking. And compared to a similarly priced AMD Ryzen, you get less performance per dollar.
 
cjcox said:
We all went AMD at one time in the datacenter and lived to regret it. Not saying it won't be different "this time" (noting, we have not decided to take the gamble).
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We have one as a build machine. And our throughput has shoot through the roof compared to our 3 year old Xeon that cost an arm and leg. That AMD builds night and day and never goes down.
 
:eek:

https://www.cnbc.com/2018/07/27/ban...es-intel-biggest-risk-remains-unresolved.html
Bank of America downgrades Intel, says 'biggest risk' remains unresolved
  • Bank of America Merrill Lynch downgraded shares of Intel on Friday to "neutral" from "buy."
  • The chipmaker's second-quarter results left its 10-nanometer production process unresolved, which the firm's analysts say is Intel's "biggest risk."
  • Bank of America lowered its price target to $56 per share from its previous goal of $62 per share.
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https://www.cnbc.com/2018/07/27/intel-plunges-on-competition-concerns-product-delays.html
Intel plunges on product delays and fears it's losing a near 'monopolistic position'
  • Shares of Intel dropped more than 8 percent on Friday on fears of stiffening competition and product delays.
  • Although the chipmaker beat earnings expectations on Thursday, analysts expressed concern that rivals like AMD will eat away at its dominant market share.
  • Aside from external competition, Intel has been struggling to maintain production timeline goals on its next-generation chips.
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