For Intel, the third-quarter financial report fell short of expectations, which was directly reflected in the stock price (closes down more than 10%), and the company’s market value plummeted by 177.5 billion overnight yesterday.
The decline in profitability, Intel said, is that the demand for personal computers has shifted from desktops and high-end commercial PCs to entry-level consumer and educational products. Despite sales growth, average selling prices fell, impacting earnings.
If you look at Intel’s financial report, the data center business that sells server chips is the main source of the company’s profits. Due to the weak economy affecting sales to large companies and government customers, in the third quarter, Intel’s revenue from the data center business group was 59%. .1 billion, down 7% year-on-year, 4.8% less than the market’s expected $6.21 billion, and it expects cloud server-related orders to grow at a slower pace.
Intel’s current performance makes the industry believe that they are still in the deepest crisis in at least a decade, and it is clear that self-rescue has begun, that is, gradually shrinking the front line and focusing on the core business.
Following the sale of the baseband chip business and the connection chip business one after another, SK Hynix officially announced that it will acquire Intel’s NAND flash memory and memory business in its entirety at a price of US$9 billion. The core business of this transaction includes Intel’s NAND SSD business, NAND component and wafer business and related technologies, as well as light and heavy assets such as Intel’s Fab 68 flash memory manufacturing plant built and operated in Dalian, China for many years.
In recent years, the NAND business has been plaguing Intel, so it makes sense to make this move.
Industry insiders pointed out that focusing on business is something that Intel must do. Its CPUs have been delayed in this generation, and they need to concentrate resources more on CPUs after getting rid of some non-core businesses.
In addition to AMD’s direct competition, even customers like Apple have recently announced billions of dollars in investments to move Mac products from Intel chips to self-developed ARM-based CPUs.
For Intel, the third-quarter financial report fell short of expectations, which was directly reflected in the stock price (closes down more than 10%), and the company’s market value plummeted by 177.5 billion overnight yesterday.
The decline in profitability, Intel said, is that the demand for personal computers has shifted from desktops and high-end commercial PCs to entry-level consumer and educational products. Despite sales growth, average selling prices fell, impacting earnings.
If you look at Intel’s financial report, the data center business that sells server chips is the main source of the company’s profits. Due to the weak economy affecting sales to large companies and government customers, in the third quarter, Intel’s revenue from the data center business group was 59%. .1 billion, down 7% year-on-year, 4.8% less than the market’s expected $6.21 billion, and it expects cloud server-related orders to grow at a slower pace.
Intel’s current performance makes the industry believe that they are still in the deepest crisis in at least a decade, and it is clear that self-rescue has begun, that is, gradually shrinking the front line and focusing on the core business.
Following the sale of the baseband chip business and the connection chip business one after another, SK Hynix officially announced that it will acquire Intel’s NAND flash memory and memory business in its entirety at a price of US$9 billion. The core business of this transaction includes Intel’s NAND SSD business, NAND component and wafer business and related technologies, as well as light and heavy assets such as Intel’s Fab 68 flash memory manufacturing plant built and operated in Dalian, China for many years.
In recent years, the NAND business has been plaguing Intel, so it makes sense to make this move.
Industry insiders pointed out that focusing on business is something that Intel must do. Its CPUs have been delayed in this generation, and they need to concentrate resources more on CPUs after getting rid of some non-core businesses.
In addition to AMD’s direct competition, even customers like Apple have recently announced billions of dollars in investments to move Mac products from Intel chips to self-developed ARM-based CPUs.
The Links: QM75DY2H BSM75GD120DN2
