{"id":233601,"date":"2021-04-23T03:24:00","date_gmt":"2021-04-23T00:24:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-intels-new-ceo-has-another-big-problem-to-fix\/"},"modified":"2021-04-23T03:24:00","modified_gmt":"2021-04-23T00:24:00","slug":"opinion-intels-new-ceo-has-another-big-problem-to-fix","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-intels-new-ceo-has-another-big-problem-to-fix\/","title":{"rendered":"#\n  Opinion: Intel\u2019s new CEO has another big problem to fix"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29a06de3945\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29a06de3945\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-intels-new-ceo-has-another-big-problem-to-fix\/#Gelsinger_says_sharp_drop_in_data-center_chip_sales_is_a_temporary_blip_but_analysts_wonder_if_rival_AMD_is_gaining_ground\" >Gelsinger says sharp drop in data-center chip sales is a temporary blip, but analysts wonder if  rival AMD is gaining ground<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-intels-new-ceo-has-another-big-problem-to-fix\/#Therese_Poletti\" >Therese Poletti<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: Intel\u2019s new CEO has another big problem to fix<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Gelsinger_says_sharp_drop_in_data-center_chip_sales_is_a_temporary_blip_but_analysts_wonder_if_rival_AMD_is_gaining_ground\"><\/span>\n  Gelsinger says sharp drop in data-center chip sales is a temporary blip, but analysts wonder if  rival AMD is gaining ground<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div class=\"cx--next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000243101\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Intel Corp.\u2019s new chief executive, Pat Gelsinger, has another urgent problem to deal with, in addition to restoring the chip giant\u2019s manufacturing business to its former glory. <\/p>\n<p> In its earning report Thursday, Intel<br \/>\n        INTC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203649727\/composite\" class=\"negative\">-1.77%<\/bg-quote><br \/>\n       said its highly profitable business of selling chips to data-center customers had its worst quarter in a year, with revenue dropping an unexpected 20%, which included a 14% drop in average selling prices.  Overall, the company\u2019s total revenue of $19.7 billion came in better than expected, even while it was down 1% year over year.<\/p>\n<div class=\"paywall\">\n       But the surprise double-digit drop in data-center sales unsettled investors, and Intel shares slipped more than 2% in after-hours trading, at one point falling to  $60.61 in the extended session. <\/p>\n<p>The state of the data-center business was the dominant topic on the earnings call Thursday afternoon, during which some analysts tried to glean if competitive pressure from rival Advanced Micro Devices Inc.<br \/>\n        AMD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208144392\/composite\" class=\"negative\">-3.12%<\/bg-quote><br \/>\n       was having an effect.   <\/p>\n<p>Intel executives tried to bat away that notion,  saying that over half of the drop in average selling prices was due to strong sales of lower-priced network system-on-a-chip products and other product-mix issues. In addition, Intel was seeing a very tough comparison to the first quarter of 2020,  when revenue soared 23% overall and data-center revenue surged 34%. They also said many customers were digesting past purchases.<\/p>\n<p>But it is that area that was left mostly undiscussed, with analysts suspecting the sizeable drop in average selling price may be due to competition from AMD. Intel cited higher startup expenses for its newest manufacturing nodes, as it moves to 10-nanometer geometries its next generation. <\/p>\n<p>\u201cCan you help us understand why you\u2019re comfortable that this is digestion and not something more, like cloud guys going to more internal solutions or solutions away from Intel?\u201d asked John Pitzer, a Credit Suisse analyst. \u201cI know you have another hard compare year-over-year on Q2, but what gives you confidence that this is digestion and not something more?\u201d<\/p>\n<p>Gelsinger noted that the company works very closely with its customers and the supply chain, and is building its forecasts based on data from these relationships. <\/p>\n<p>\u201cWe know what their inventory levels are. These are very intimate relationships,\u201d Gelsinger said. \u201cSo I\u2019d just say at that level, we\u2019re confident when we speak that what they\u2019re doing, and what we\u2019re going to see in the future, and how they\u2019re digesting and deploying the products that we delivered to them last year, are now ramping in.\u201d<\/p>\n<p>Even so, not everyone is buying it. Patrick Moorhead, an analyst with Moor Insights, said in a brief note that he attributed the lower prices in the data-center group \u201cto a combination to mix shift lower and competitive pressure.\u00a0\u201c<\/p>\n<p>With data center as such a big profit driver for Intel, investors are hoping that Gelsinger is right and that after a brief digestion period, those sales will come back. Next Tuesday, when AMD reports its earnings, should provide another data point. But it may be that Gelsinger not only has a manufacturing issue to work on and build up again, but an increasingly stronger opponent in AMD.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Therese Poletti\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Therese_Poletti\"><\/span>Therese Poletti<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D3B59D937360%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: Intel\u2019s new CEO has another big problem to fix &#8221; Gelsinger says sharp drop in data-center chip sales is a temporary blip, but analysts wonder if rival AMD is gaining ground Intel Corp.\u2019s new chief executive, Pat Gelsinger, has another urgent problem to deal with, in addition to restoring the chip giant\u2019s manufacturing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":233602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-233601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/233601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=233601"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/233601\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/233602"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=233601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=233601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=233601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}