Intel earnings: What economic crisis?

Intel earnings: What economic crisis?
  • Q1 revenue: $19.8 billion (23% YoY, -2% QoQ, vs. $18.7 billion expected)
  • Q1 earnings: $5.7 billion (42% YoY, -17% QoQ, above expectations)
  • Q2 revenue guidance: $18.5 billion (below expectations)

The big number: Intel's Data Center Group produces 95% of the processors used in servers around the world, and that business is growing at a 43% clip. It recorded $7 billion in revenue during the quarter.

People are talking: "Over the last several years, we've transformed the company, and are now positioned to grow our share in the largest market opportunity in our history," CEO Bob Swan said on a conference call with analysts. "We live in a world where everything increasingly looks like a computer, including our homes, our cars, our cities, our hospitals and our factories."

Opportunities: Intel doesn't see any slowdown ahead for its primary data-center customers, the large cloud providers like AWS, Microsoft and Alibaba, especially given demand for cloud services as stay-at-home orders continue. The PC market is more uncertain: Swan said that PC orders were actually a little better than expected in the first quarter, as everyone started working from home, but that was offset by slower demand and supply chain disruption in China.

Threats: While China's electronics factories are getting back to work making PCs and servers, Intel employees are still trying to design next-generation products while sequestered, and that's difficult, Swan said. Intel has also been scrambling to catch up to its usual pace of manufacturing improvements after a delay last year, but Swan said that Intel expects to ship new server chips built with its next-generation manufacturing technology by the end of the year.

The power struggle: When times get tough, it's nice to have 95% market share in a market as valuable as server processors. Longtime rival AMD currently offers some of the most competitive offerings it's had in years, and server processors based on Arm's technology are turning heads, but while that enormous market-share lead might slip a bit, Intel isn't currently that worried. And analysts don't appear too worried about PC competition, either: No one on the call asked about reports earlier in the day that Apple plans to use its own chips, instead of Intel's, in laptops starting next year.

However, it definitely feels like a year when consumers and business PC buyers will decide to wring a little more life out of that old notebook. Intel always has its best quarter in the fourth quarter, thanks to the holiday shopping season: If unemployment reaches the heights some economists fear it might, that will have an impact.


Judge Zia Faruqui is trying to teach you crypto, one ‘SNL’ reference at a time

His decisions on major cryptocurrency cases have quoted "The Big Lebowski," "SNL," and "Dr. Strangelove." That’s because he wants you — yes, you — to read them.

The ways Zia Faruqui (right) has weighed on cases that have come before him can give lawyers clues as to what legal frameworks will pass muster.

Photo: Carolyn Van Houten/The Washington Post via Getty Images

“Cryptocurrency and related software analytics tools are ‘The wave of the future, Dude. One hundred percent electronic.’”

That’s not a quote from "The Big Lebowski" — at least, not directly. It’s a quote from a Washington, D.C., district court memorandum opinion on the role cryptocurrency analytics tools can play in government investigations. The author is Magistrate Judge Zia Faruqui.

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Veronica Irwin

Veronica Irwin (@vronirwin) is a San Francisco-based reporter at Protocol covering fintech. Previously she was at the San Francisco Examiner, covering tech from a hyper-local angle. Before that, her byline was featured in SF Weekly, The Nation, Techworker, Ms. Magazine and The Frisc.

The financial technology transformation is driving competition, creating consumer choice, and shaping the future of finance. Hear from seven fintech leaders who are reshaping the future of finance, and join the inaugural Financial Technology Association Fintech Summit to learn more.

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The Financial Technology Association (FTA) represents industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.

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As AWS preps for its annual re:Invent conference, Adam Selipsky talks product strategy, support for hybrid environments, and the value of the cloud in uncertain economic times.

Photo: Noah Berger/Getty Images for Amazon Web Services

AWS is gearing up for re:Invent, its annual cloud computing conference where announcements this year are expected to focus on its end-to-end data strategy and delivering new industry-specific services.

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Donna Goodison

Donna Goodison (@dgoodison) is Protocol's senior reporter focusing on enterprise infrastructure technology, from the 'Big 3' cloud computing providers to data centers. She previously covered the public cloud at CRN after 15 years as a business reporter for the Boston Herald. Based in Massachusetts, she also has worked as a Boston Globe freelancer, business reporter at the Boston Business Journal and real estate reporter at Banker & Tradesman after toiling at weekly newspapers.

Image: Protocol

We launched Protocol in February 2020 to cover the evolving power center of tech. It is with deep sadness that just under three years later, we are winding down the publication.

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Bennett Richardson

Bennett Richardson ( @bennettrich) is the president of Protocol. Prior to joining Protocol in 2019, Bennett was executive director of global strategic partnerships at POLITICO, where he led strategic growth efforts including POLITICO's European expansion in Brussels and POLITICO's creative agency POLITICO Focus during his six years with the company. Prior to POLITICO, Bennett was co-founder and CMO of Hinge, the mobile dating company recently acquired by Match Group. Bennett began his career in digital and social brand marketing working with major brands across tech, energy, and health care at leading marketing and communications agencies including Edelman and GMMB. Bennett is originally from Portland, Maine, and received his bachelor's degree from Colgate University.


Why large enterprises struggle to find suitable platforms for MLops

As companies expand their use of AI beyond running just a few machine learning models, and as larger enterprises go from deploying hundreds of models to thousands and even millions of models, ML practitioners say that they have yet to find what they need from prepackaged MLops systems.

As companies expand their use of AI beyond running just a few machine learning models, ML practitioners say that they have yet to find what they need from prepackaged MLops systems.

Photo: artpartner-images via Getty Images

On any given day, Lily AI runs hundreds of machine learning models using computer vision and natural language processing that are customized for its retail and ecommerce clients to make website product recommendations, forecast demand, and plan merchandising. But this spring when the company was in the market for a machine learning operations platform to manage its expanding model roster, it wasn’t easy to find a suitable off-the-shelf system that could handle such a large number of models in deployment while also meeting other criteria.

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Kate Kaye

Kate Kaye is an award-winning multimedia reporter digging deep and telling print, digital and audio stories. She covers AI and data for Protocol. Her reporting on AI and tech ethics issues has been published in OneZero, Fast Company, MIT Technology Review, CityLab, Ad Age and Digiday and heard on NPR. Kate is the creator of RedTailMedia.org and is the author of "Campaign '08: A Turning Point for Digital Media," a book about how the 2008 presidential campaigns used digital media and data.

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