It was not so long ago that Intel dominated the processor market with an authentic iron fist, while AMD focused only and only on being a budget alternative. In fact, if for some reason you asked an expert what you thought of the processor giant Intel 4 or 5 years ago, he would probably say that he was an invincible company without any shadow of competition in various markets.
After all, we are talking about a manufacturer that had 99% of the Data Center market, 90% of the Desktop CPU market! In addition to all this, I was also making moves to enter other markets such as graphics cards, and I was also developing new types of architectures.
A domain and invincibility that apparently was put in the dustbin … Anyway, something very wrong is happening with Intel.
Therefore, the latest account report demonstrates a brutal second quarter for Intel, with impressive revenues and very interesting growth in several segments. However, the company also revealed that its transition to the 7nm process was significantly delayed … A 12-month delay, which will ruin Intel’s entire planning for the coming years.
That said, in practice, this postponement should not be the classic ‘spilled broth’! After all, we are talking about extremely complex technology, and Intel even said that it has already identified the problem and its solution. Very briefly, Intel is not the first manufacturer to have such a problem, nor will it be the last. The problem is that there is no longer the same aura of confidence around Intel … Consumers, investors and analysts are afraid of what will happen.
As a result, Intel’s stock price fell 20% last week, which is never a great way to do a market survey, especially when in COVID times prices jump more than who knows what. Still, they are numbers with some interest.
Intel’s problem seems profound
Intel has already put the main responsible for the development of production processes on the street, Chief Engineer Murthy Renduchintala, making the former leader of the staff a kind of escape from the whole problem. However, it seems that Intel’s problem goes a little deeper than that.
For example, in the case of IA accelerators, Intel made a huge investment in Nervana and its executives in the past year of 2016. However, after the launch of the first IA chips, Intel decided to take a completely different path when acquiring Habana Labs for 2 billion dollars. Perhaps it was even the most correct decision, it is likely that Intel realized that the path was not that, and then did something to change its route. But it was also a somewhat strange decision, which made very good people think about what is going on in the minds of the giant’s executives.
However, the truth is that the processor market is also no longer the same, all thanks to the return to AMD’s glory, but also from the latest moves by Apple regarding the ARM architecture!
At the end of the day, AMD went from being almost bankrupt, to now stealing Intel’s market share seriously, while it continues to grow in other markets, and has even surpassed its rival’s value per share. Similarly, Apple’s decision not only reflects something very wrong within Intel, it also demonstrates that the market is really changing, probably away from the x86 which is bread and butter from both Intel and AMD.
Still, before burying Intel, it must be borne in mind that the blue giant is still the largest processor manufacturer on the planet, and will likely continue to be for several years. However, you will definitely have to change a little bit internally if you don’t want to have any more problems, while you will have to deal with a new world of competition and rivalry. (What’s good, competition is excellent in any market.)
In short, Intel’s invincibility is over! (proof of this is the negotiation with TSMC, which obviously shows an image of fragility and even some discomfort). Therefore, the company must now prove that it is of sufficient quality to at least try to regain its throne.
Furthermore, what do you think about all this? Share your opinion with us in the comments below.
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Since I was very young I became interested in computers and technology in general, I had my first PC at 10 and at 15 I built my first tower, since then I never stopped. Whatever technology is, I’m in the front row to find out more.