Net profit in the third quarter fell by 28.6%, market value evaporated 150 billion a day: Intel is struggling to change
original title: Net profit in the third quarter fell by 28.6%, market value evaporated 150 billion a day: Intel is struggling to change
Intel continues to adjust and defend .
On October 23, the decline in the stock price of the semiconductor giant Intel once again caused concern. The last time was in July, due to the delay of 7-nanometer chips, the stock price plummeted 16.24%; this time, after the third quarter financial report was announced on the 23rd, Intel’s stock price fell by more than 10% that day, and its market value evaporated by nearly $25 billion.
Year-to-date, Intel has fallen by 19.5%, and its stock price is currently US$48.2, with a market value of approximately US$204.9 billion. In comparison, the market value of NVIDIA has reached 335.8 billion US dollars, AMD has a market value of 96.2 billion US dollars, and Qualcomm is 145.4 billion US dollars.
According to the financial report, Intel’s revenue in the third quarter of 2020 was $18.3 billion, down 4.4% year-on-year and down 7.1% from the previous month; net profit was $4.28 billion, down year-on-year 28.6%; core business data center revenue was 8.422 billion US dollars, a year-on-year decrease of 10%.
Intel CEO Swan told the media that after the outbreak, market demand has cooled down, causing inventory backlogs, and the company’s decision to reduce purchases has led to weak performance. Regarding whether the 7-nanometer chip will be manufactured by TSMC, he said that early next year, a decision will be made. From the industry’s perspective, Intel may adopt a combination of its own manufacturing and foundry.
Intel’s Chief Financial Officer George Davis said that the decline in revenue was mainly affected by weak demand caused by the new crown pneumonia epidemic, and revenue from the corporate and government markets decreased year-on-year On the other hand, the production cost of a new generation of high-end chips is higher, which squeezes profit margins.
Looking back over the past few years, while Intel is laying out new industries, it has not only been challenged by AMD and Arm in the main battlefield of CPU, but also by AI and 5G. The fierce competition between Nvidia and Internet giants can be described as embarrassing on all sides. Intel has been at the forefront of public opinion in the process of being overtaken by Nvidia in market value.
Still, that said, Intel is still strong, but the feast is over. Now Intel continues to strengthen its main battlefield. Intel still clings to the fortress of x86, and still ranks first in the revenue of semiconductor companies, with revenue reaching a new high last year.
Earlier this week, Intel announced the sale of its flash memory business NAND to the Korean chip company SK Hynix. When asked about the reason for its withdrawal from the flash memory business, Swan said that with As the semiconductor market has grown in the past few years, Intel has begun to seriously consider its industry positioning, hoping to invest in products with better growth and greater technological differences, such as core CPUs, GPUs and AI.
After the sale of NAND flash memory assets, Intel will still receive 9 billion US dollars in cash. Some semiconductor analysts also told the 21st Century Business Herald reporter that the 9 billion US dollars will be put to good use. Properly developing production capacity and restraining AMD is not difficult. From this perspective, selling is not a bad thing.
At least in terms of financial data, Intel still maintains the first echelon. According to Intel estimates, revenue in the fourth quarter of fiscal 2020 will be approximately $17.4 billion, and revenue in fiscal 2020 will be approximately $75.3 billion, a year-on-year increase of 5%.
In contrast, Nvidia focuses on GPU’s main business and thrives under an active strategy. In the past two years, Intel is also seeking change and attacking from all sides. When it comes to keeping the CPU core base camp, it has to be said that the seemingly dazzling mergers and acquisitions and continuous changes, in fact, the semiconductor industry has been strengthening the professionalism strategy.
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