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Intel (NASDAQ: INTC) Is the Only Semiconductor to Experience “Gross Margin Contraction” Over the Next Few Years, According to Goldman Sachs

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3 years ago

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Intel (NASDAQ:INTC), long regarded the uncontested leader in the silicon sphere, has been on the receiving end of a litany of adverse developments lately. Goldman Sachs (NYSE:GS) became the latest prognosticator of bad news today as it took a proverbial cudgel to Intel’s medium-term prospects.

While citing channel checks that reveal a weak demand for PCs, Goldman Sachs downgraded Intel today from ‘Neutral’ to a ‘Sell’ rating. The Wall Street behemoth also lowered the target price for Intel’s stock to $54 from an earlier peg at $65, translating to a downside potential of 8.44 percent relative to the current price level of $58.98, as of 09:38 a.m. ET.

Goldman analyst Toshiya Hari observed in the latest investment note:

“[Channel checks show] “a slowdown in PC builds in 2H20 and continued share loss for Intel in the client and server CPU markets.”

The analyst also pointed to the “competitive dynamics headwinds” that Intel continues to face across a number of its business segments, with AMD emerging as a major threat to Intel’s domination.

While conceding that Intel looks “cheap” relative to the valuation of its competitors, Hari asserted that Intel is “the only company where we forecast gross margin contraction over the next few years.”

Of course, today’s downgrade follows a serious blow that Intel suffered in late June when Apple (NASDAQ:AAPL) officially announced a shift away from Intel-sourced processors for its Mac lineup. While the transition is expected to take as many as two years, Apple will eventually move the entirety of its Mac offerings to custom ARM-based processors, eviscerating an important revenue source for Intel in the process. Of course, the strategy serves to benefit Apple as the iPhone maker will be able to optimize these custom processors to extract the maximum benefit when it comes to the performance and energy efficiency of the Mac lineup.

Apart from changing industry dynamics, Intel is also being affected by the ongoing multi-faceted spat between the U.S. and China. As an illustration, on the 01st of July, Intel was forced to halt the shipment of its server products to the Inspur Group following a directive from the U.S. administration. Bear in mind that Inspur, headquartered in the Shandong province of China, is responsible for providing its customers with Enterprise Resource Planning (ERP), servers, artificial intelligence, big data, and other solutions requiring high-end silicon chips. Though Intel was able to resume normal business dealings with Inspur by the 04th of July, the development highlights the vulnerability of American tech giants to the escalating geopolitical tensions between the two largest economies of the world.

Even so, Intel appears to be focusing on its 10nm product lineup to maintain its market share. As an illustration, Intel’s Tiger Lake family of

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By: Rohail Saleem
Title: Intel (NASDAQ: INTC) Is the Only Semiconductor to Experience “Gross Margin Contraction” Over the Next Few Years, According to Goldman Sachs
Sourced From: wccftech.com/intel-nasdaq-intc-is-the-only-semiconductor-to-experience-gross-margin-contraction-over-the-next-few-years-according-to-goldman-sachs/
Published Date: Mon, 06 Jul 2020 14:06:21 +0000

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NVIDIA GeForce RTX 30 Gaming Laptops Powered Massive Cryptocurrency Mining Farm Spotted in China, Over Hundreds of Ampere Laptops

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2 years ago

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February 11, 2021

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Last week, it was reported how cryptocurrency miners are rushing after NVIDIA GeForce RTX 30 Gaming Laptops to earn that sweet digital currency profits. Well, now a video tour of one of the mining farms has surfaced showcasing several hundred gaming laptops being used to mine the cryptocurrencies.

Several Hundred NVIDIA GeForce RTX 30 Gaming Laptops Spotted In Chinese Cryptocurrency Mining Farm Video Tour

Earlier, we only got to see a glimpse of the cryptocurrency mining farm but a brand new video has surfaced which shows the complete scale of the setup. The setup is based in China but the user has not mentioned the location for obvious reasons. As you can tell, the mining farm is set up with and utilizes NVIDIA GeForce RTX 30 Gaming laptops from the Chinese manufacturer, Hasse.

The Hasse laptop is based on the GeForce RTX 3060 mobility GPU. The GeForce RTX 3060 laptop solution is definitely not similar to the desktop variant which offers much better specifications and doesn’t come at a lower price either. According to NVIDIA themselves, the RTX 3060 laptops start at $999 US & the miners can save a penny by purchasing in bulk but they end up paying at least $600 US more for the laptop variant. Plus, they also end up with unnecessary hardware that the laptops feature. At the same time, the laptop variants do feature reduced TGPs which might save electricity costs & offer higher cryptocurrency mining rates.

pic.twitter.com/XJrfH9Fx7V

— 포시포시 (@harukaze5719) February 9, 2021

What’s interesting here is that the user has bought these laptops in a bulk order which means that either the retailer, distributor, or the manufacturer itself is openly supporting cryptocurrency miners over actual customers such as gamers which these laptops are primarily designed for. The selling party could be taking advantage of crypto miners by selling these at scalped prices to earn a profit.

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By: Hassan Mujtaba
Title: NVIDIA GeForce RTX 30 Gaming Laptops Powered Massive Cryptocurrency Mining Farm Spotted in China, Over Hundreds of Ampere Laptops
Sourced From: wccftech.com/nvidia-geforce-rtx-30-gaming-laptops-powered-massive-cryptocurrency-mining-farm-spotted-in-china-over-hundreds-of-ampere-laptops/
Published Date: Thu, 11 Feb 2021 04:17:52 +0000

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Intel 3rd Gen Xeon Ice Lake-SP CPU Rumors – 10nm With Up To 40 Cores, 8-Channel DDR4-3200, 64 PCIe Gen 4.0 Lanes, Max 270W TDP

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2 years ago

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February 11, 2021

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A couple of rumors regarding Intel’s Ice Lake-SP Xeon server CPUs have surfaced over the web, mostly from known leaker, Momomo_US. The information consists of specifications, configs & power ratings of several SKUs that will be part of the 3rd Gen Xeon Scalable processor family.

Intel 3rd Gen Ice Lake-SP Xeon CPU Rumors Point Out Up To 40 Cores, 270W TDPs & Brand New Core Architecture

Starting off with the details, Intel’s 3rd Gen Ice Lake-SP Xeon CPUs will be based on the 10nm+ process node and utilize the Sunny Cove core architecture. The Intel Sunny Cove x86 architecture has been around since 2019 and was first featured on Intel’s 10th Gen Ice Lake processors for the notebook segment. Intel has since moved over to Tiger Lake which is based on the Willow Cove x86 architecture and makes use of the 10nm SuperFin process node.

Some of the major upgrades that Intel’s 10nm+ for Ice Lake-SP Xeon CPU will deliver include:

2.7x density scaling vs 14nmSelf-aligned Quad-PatterningContact Over Active GateCobalt

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By: Hassan Mujtaba
Title: Intel 3rd Gen Xeon Ice Lake-SP CPU Rumors – 10nm With Up To 40 Cores, 8-Channel DDR4-3200, 64 PCIe Gen 4.0 Lanes, Max 270W TDP
Sourced From: wccftech.com/intel-3rd-gen-xeon-ice-lake-sp-cpu-rumors-10nm-up-to-40-cores-270w-tdp/
Published Date: Thu, 11 Feb 2021 10:02:51 +0000

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Intel’s Raja Koduri Teases Xe HPG Enthusiast Gaming Graphics Cards In Action Within 3DMark Mesh Shader Test, Launch Imminent?

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2 years ago

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February 11, 2021

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Intel’s Senior Vice President, Raja Koduri, has been dropping some major bombs on his Twitter feed for a while now. The most recent one being the Xe HPC chip shot which is an engineering marvel but it looks like Raja has switched gears and now dropped a teaser of Intel’s first gaming discrete graphics cards, the Xe HPG.

Intel Teases Xe HPG Enthusiast Gaming Graphics Cards, Running 3DMark’s Upcoming Mash Shader Feature

It’s been some time since we last heard about Intel’s Xe HPG (High-Performance Gaming) discrete GPUs or graphics cards. Intel’s main focus has been Xe-LP and they also dive in deeper within the tech that Xe HPC has to offer considering it’s their biggest chip design to date and the flagship Xe product. But the Xe HPG is where the gaming community is more focused at and we have got the first teaser of Intel’s discrete graphics cards based on the HPG GPUs running in action.

Xe HPG mesh shading in action, with the UL 3DMark Mesh Shader Feature test that is coming out soon pic.twitter.com/fnYeWoM08c

— Raja Koduri (@Rajaontheedge) February 10, 2021

The teaser from Raja shows an undisclosed Intel Xe HPG GPU based discrete graphics card running the UL 3DMark Mesh Shader Feature test. This test is coming out soon and will be integrated within the 3DMark test suite. Mesh Shader is one of the major features introduced within DirectX 12 Ultimate API back in 2020. The feature is supported by NVIDIA’s Turing, Ampere, and AMD’s RDNA 2 graphics architectures. Based on this tweet, Intel will also be adding Mesh Shaders support on its Xe-HPG class discrete GPUs.

The technology helps to dramatically improve performance and image quality when rendering a scene with a substantial number of very complex objects. Take for instance a very complex & triangle-heavy mesh and what Mesh Shaders would essentially do is segment it into smaller meshlets. Each meshlet ideally optimizes the vertex re-use within it. Using the new hardware stages and this segmentation scheme, devs can render more geometry

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By: Hassan Mujtaba
Title: Intel’s Raja Koduri Teases Xe HPG Enthusiast Gaming Graphics Cards In Action Within 3DMark Mesh Shader Test, Launch Imminent?
Sourced From: wccftech.com/intels-raja-koduri-teases-xe-hpg-enthusiast-gaming-graphics-cards-in-action-3dmark-mesh-shader-test/
Published Date: Wed, 10 Feb 2021 07:21:19 +0000

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