JPR estimates Intel GPU unit losses at $3.5 billion, suggests selling it

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Aug 11, 2022.

  1. Hilbert Hagedoorn

    Hilbert Hagedoorn Don Vito Corleone Staff Member

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  2. Ivrogne

    Ivrogne Member Guru

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    It's a GPU, I guess
    Who expect Intel will be competitive with it's first gen of GPUs? I don't. But I hope they keep on trying so we can have a real third player in this market.
    I'm not an expert, but if they keep on doing it and keep on learning, they probably can be competitive at the 3rd gen.
    I might be wrong tho, but whatever.
     
  3. TLD LARS

    TLD LARS Master Guru

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    That is a weird recommendation from JPR.
    First using Billions with little to show for it and then sell off everything, who would buy something like this at a good price and would it even survive a owner change?
    Intel has the money to make it work, the worst enemy is maybe the investors.
     
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  4. vf

    vf Ancient Guru

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    That seems to be the market. Quick fixes, quick money, quick profits. If it doesn't deliver instant results, sell it off. Instant society. Lets not try and nourish something with a bit of time and time to build up experience.
     
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  5. Horus-Anhur

    Horus-Anhur Ancient Guru

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    JPR, a company that makes nothing and innovates nothing. They only speculate about immediate market value.
    When a company has a mindset like this, of course they can't understand why real companies invest money today, to get returns years later.

    I remember the story about when nvidia in the mid 90´s, when they were almost bankrupt. They could have cut their loses short, after the failure of the NV1.
    But Jensen and his team decided to make one last bet, and put all the money the company had in one last graphics chip. And it worked, the RIVA 128 was a success.
    If they had the mentality of JPR, of giving when things don't go well, today nvidia would not the market leader.
     
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  6. southamptonfc

    southamptonfc Ancient Guru

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    Raptor Lake doesn't look like it'll set the world on fire, even though it might burn a few PSUs. If Intel find themselves losing ground to AMD on the CPU side this year and facing a global economic downturn, I can see this happening. Tech companies have to make hard and big decisions.
     
  7. fantaskarsef

    fantaskarsef Ancient Guru

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    JPR.... thank god they don't manage my money. I don't know why they get any coverage or attention.
     
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  8. Airbud

    Airbud Ancient Guru

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    They get their financial advice from Yahoo
     
  9. tunejunky

    tunejunky Ancient Guru

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    the worst enemy @ Intel are the wage and bonus schemes for the executives. quarterly bonuses based on stock price or unit sales encourages short term thinking.
    very, very few investors use Intel for "shorting" or pump and dump because the stock price is relatively high for that and Intel is as Blue chip as the NASDAQ gets.
     
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  10. schmidtbag

    schmidtbag Ancient Guru

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    What Intel really should have done was target workstations and servers for the first year while optimizing gaming performance next year. There are far fewer workstation tasks to optimize for, and server tasks tend to not be as complex as games. This would give them plenty of time to get gaming GPUs in better shape while being otherwise relatively easy to sell. After all, the only people buying Xeons are those who swear by Intel anyway, so why not mooch off them a little more?

    If Intel really wanted to go after games, they should have only released laptop/mobile chips for Alchemist. People have lower expectations for those, and they don't get as much publicity. Sure, this wouldn't help Intel take a big piece of the miner market, but that ship has already sailed anyway (what a weird mix of idioms...).
     
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  11. Loobyluggs

    Loobyluggs Ancient Guru

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    Intel is already a highly diversified business and to consider it purely as one thing they make is...odd.

    If it was the only thing they sold, I guess their comments make sense, but c'mon...this is intel...they make chips, and cutting a chip-making division would never make sense, when making chips is your business.
     
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  12. tunejunky

    tunejunky Ancient Guru

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    Intel does have a position of Corporate Storyteller (true) which is a role kind of like an elder statesman in ancient China.
    you should apply
     
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  13. tunejunky

    tunejunky Ancient Guru

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    not only that they created the entire IT infrastructure and now they're behind the 8-ball.
    i invested in them for tech as my very first investment after college.
    i want them to "push the pedal to the metal" and i'm unhappy (and somewhat bitchy) when they don't.
    JPR is a wannabe player (to JD Power) more useful when talking quantifiables like units shipped (which is public record) or who's changing jobs.
     
  14. Loobyluggs

    Loobyluggs Ancient Guru

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    August the 1st 2000, they were trading at $75 a share, by December the 1st of that year, their share price dropped to less than half, at $30 per share.

    Today, right now, they trade at (roughly) $36 a share - and have bumbled between $13 and $70 like a rubber band, squeezing and squashing itself, uncoiling the strands of rubber contained within it, heating up and cooling down, depending on how much pressure is being applied to them.

    Citation:

    intc us.jpeg

    As for nvidia, I like the fact they put their money into investing into scientific research, but I just do not think it is fuelled by much more than egotism (AKA: The Leather Jacket Problem, or, LJP for short) I just don't. nvidia have found themselves in a situation wherein they can charge whatever they want for desktop GPU's for consumers, and, because IT investments can be written off, corporates do not care too much about the LJP.

    I think I can say that if someone keeps wearing a leather jacket, they are not a perceived threat by alphas.

    nvidia has a diversified product range for sure, yet they are (to me) a yardstick as to what is possible for voltages through a system and raw throughput at specific frequencies...many have said over the years they are only powerful because of the amount of power running through them, but, I think they genuinely are egotistical douchbags who are morally bankrupt.

    f**k 'em.
     

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  15. TimmyP

    TimmyP Master Guru

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    Yeah thats a terrible take ^
     

  16. EspHack

    EspHack Ancient Guru

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    I wonder if CEOs dont ever get sick of this bs, every time a big old company tries something truly new to them, unless they get government to pay for it or somehow obfuscate its cost, a week wont go by without the whole financial world betting against it and calling its funeral

    its all fine for a startup to lose money with no end in sight as long as they keep some hype going, but old established companies apparently only exist to be milked until they die of ossification

    look now at all the decent car companies about to get crushed by the apple on wheels company because their shareholders wont allow them to move
     
  17. sykozis

    sykozis Ancient Guru

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    At this point, it's not even about being competitive.... It's about the fact that Intel has yet to actually launch anything meaningful and what they have launched has been a near complete disaster.
    Intel hired someone to run AXG with a reputation for delayed launches and missing features. Now, 5 years in, he's more than a year late and most of the features either don't work or don't work properly on a product line that he's spent 2 years trying to hype up..... With Intel's resources and history, launching a functional graphics product should be relatively easy....but instead, they have a product that doesn't even half work.... It has industry leading AV1 support.... Great! Unfortunately, it struggles with literally everything else a graphics card does. It's basically little more than a dedicated AV1 encode/decode card at this point.

    Most of us never expected for Intel to be competitive with its first generation of graphics cards. But it can't reach a point of being competitive if it never actually launches the product line to begin with. Not only is the launch more than a year late but AIBs have started pulling out due to both product delays and product quality concerns. At this point, investors should be demanding Raja Koduri's head on a pike, as well as the head of whoever thought hiring him was a good idea.
     
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  18. JamesSneed

    JamesSneed Ancient Guru

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    Nobody. Anyone that follows the tech side knew they would bleed money. Worst case scenario is AMD lands RDNA3 before Intel gets ramped up and selling cards. AMD's next gen can likely compete with very small low-end parts that are much cheaper to make. Intel needs to take its losses fire whomever needs firing, streamline the team the hardware and driver teams, and build the next gen to be competitive. They cannot stand to stop making GPU's as this is also going to play out in the data center over the next few years. CPU competition from ARM and AMD are eating into Intel's market share really hard the last two years and not having a GPU solution is going to be the death nail.
     
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  19. haste

    haste Ancient Guru

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    They don't even have their first gen available world-wide and some moron with personal agenda recommends them selling the whole division? Awesome. Imho the hardware is actually better than I expected it to be for their first gen. Drivers are terrible, but nobody who is old enough to remember ATI or NV drivers back in the days of Geforce256 or Radeon 9700 is surprised by that.

    Gelsinger would be completely stupid to sell it at this point. If he has at least a bit of common sense left, he will keep it.
     
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  20. Loobyluggs

    Loobyluggs Ancient Guru

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    And, they could and probably will just write it off into their corporate costs.
     
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