Advanced Micro Devices, Intel and Qualcomm, the famous U.S chip companies, reported their first-quarter earnings at the end of last week. All of them had very different outcomes, none of them were near the same. Each one of them had their own weaknesses and strengths, all in different areas.
Advanced Micro Devices
Advanced Micro Devices showed a significant growth in their, earnings, revenue, and profit margin. Advanced Micro Devices profits showed that they went up, to a whopping $81 million dollars from last years loss of $33 million dollars. This is a huge jump and great leap for the company. Revenue went up as well, 23% from the last three months, and 40% from a year prior, all fantastic leaps. Margins went up also, from last years 32% to now 36%. All around Advanced Micro Devices seemed to do great and move upward in all aspects.
Ryzen’s team of processors, was the biggest help and contributor for this growth. Radeon graphics group and its Vega designs, had put their team work in as well. The Compute and Graphics segment, had seen a 95% year-on-year growth rate, this is astonishing. In just one year, Advanced Micro Devices nearly doubled their revenue, from graphics and processors. This is a feat in itself. Advanced Micro Devices are doing extremely well, and are just moving forward in all areas of importance for the company.
The Enterprise, Embedded and Semi-Custom group, the ones responsible for the EPYC family of server processors as well as the custom chip designs, that are found in Sony Playstation, and Microsoft Xbox was down by 12%. The down is because of the fall of income from the console design wins. This is a loss for the company, but it is not something that cannot be reversed.
Advanced Micro Devices, has brought back many customers, these customers include both channel customers and the system OEMs such as Dell, HP, and Lenovo. Through the earnings, it is good to see that Advanced Micro Devices are on their way up, the numbers prove just that. They seem to be doing the right things to move forward and become better.
Ryzen Mobile will be offered in 25 additional notebooks, stated CEO Lisa Su. Both consumers and commercial markets in the next two quarters, will be able to have access to these. This is a great option and will be more popular for consumers alike.
Advanced Micro Devices second-quarter forecasts expect to see, a 50% year-on-year growth.
That is a great percentage to grow, and hopefully Advanced Micro Devices will see this happen for them.
Intel’s results were very strong for the first quarter, this proved in numbers. Revenue was up by 9%, net income was up by 50% quarterly and by 30% year to year. The largest increases were in the Data Center Group, at 24% and the memory group, at 20%. All of the key points went up, which is a great thing for Intel. Intel is one of those very important companies that have been around, and it is good to see them grow in these fields.
The Programmable Group, a newer segment, also grew. The Programmable Group is mostly based on the asset of Altera. Intel hopes it will create more growing opportunities to aim at the strength of Nvidia at many angles, increased revenue by 17% to almost a half a billion dollars. Xilinx a competitor of Intel, it will have its work cut out for them, Altera is shaped by the design and form that Intel brings forward.
The Client Computing Group, also grew by 3%. This group makes about half of Intel’s revenue. This growth is actually a big win for the company, considering that there are claims that the computer market is withering down and not going to be around for a long time.
There was an announcement, that Intel’s 10 nanometer process for technology is being changed from 2018 to now 2019, for a huge production. Intel is now building its fastest processors ever made, on one of many segments of its 14nm technology. Lower process provides many benefits for these kinds of chips, by letting them run at higher frequencies and lower voltages.
Intel has been in the lead with their semiconductors, all from their process technology. This set back might be causing Intel to lose its momentum and lead. The idea of Intel using a new way to separate product design from process technology ,design in order, to give its groups more freeway to take in this delay and any future problems manufacturing may stumble across. Intel will be combining designs on multi-chip packages, from different process nodes, and depend on new interconnects to upgrade their level of their performance. This system has already been put into action by Intel, with Kaby Lake-G, its Intel CPU and AMD GPU product.
Intel is moving ahead with product shifts, and also with new workers, to make it better. Raja Koduri joined Intel’s team to be in charge of their compute group. His job is to watch over the primary processor and the graphics architecture designs. Intel has also hired, former AMD marketing lead, Chris Hook. Koduri, Jim Keller was announced by CEO Brian Krzanich as taking over silicon design at Intel’s company. Keller’s last job was at Tesla, where he was working on artificial technologies used for AutoPilot. He was also working prior to this for, Apple and AMD, building processor architectures for both. With a new team of experts Intel is truly trying to up their game. This new team can really make an impact.
Machine learning, artificial intelligence and graphics are going to be important areas for markets to watch throughout the year 2018. Intel remains at the top of the tech world, but to stay there, they have to prove that they can address all of the demands of the future. With their work cut out for them, they are putting all aspects into perception. This also includes, their team workers. If anybody can do it Intel can.
Qualcomm has been having, licensing problems and legal problems. This has made it hard for them to show their proper monetary gains. Qualcomm showed a five percent increase in revenue from a one year earlier, but a low of thirteen percent orderly. Net income was also down by fifty-two percent.
The semiconductor technologies group, made out from tax shifts in America, as well as their total modem chip shipments being up, a total of a four percent yearly increase. They also upped all of their margins, and cut some expenses. They did this by letting go of employees in the company. Qualcomm had left many people jobless, they hope to better themselves, and bring in more income.
The licensing portion of Qualcomm’s business’s revenue, is down by forty-four percent. This is mainly to do with Apple and one other customer, that has not been named, not paying.
Qualcomm announced a change in its terms for their licensing group, creating an option to separate standard essential patents from non-essential patents. This division already existed for Chinese OEMs, but Qualcomm is now making it worldly. SEP is supposed to construct a phone and cover all of the aspects around technologies that create the 3Gig, 4Gig and 5Gig networks. Non SEP takes care of things like, power systems and camera images.
At a lower price, if customers want to pay less, they will be able to choose the SEP way only. By choosing this, they will not have the ability to take advantage of all of Qualcomm’s technological offerings.
Of coarse, with a lower price customers will be paying for what they get, which is not all of the benefits of Qualcomm’s latest and updated technologies.
Qualcomm also lowered their limit on the sum, they lowered the prices on their phones. Selling prices started from $500 but now they are down to $400. Phone makers like Apple or Samsung, would only have to pay the lower sum, no more then $400 for the phone. This does not include some fees. This drop in price seems like Qualcomm is trying to get these manufacturers back on their side. In hopes that the price drop will work, they will have top manufacturers on their side, making their company stronger.
These ways will reduce income for the licensing group portion. If Qualcomm can get these manufacturers and customers back with them, and also remove their legal problems that they have against them, they will be able to better plan for the future, security, and success of their company.
Qualcomm still has some deep challenges ahead of them. Settling their licensing problems is one of their biggest issues. The company also must decide where it will invest in certain areas. Qualcomm has some work to do, but if they play their cards right and make the right decisions along the way, they should be ok and moving back up.
Qualcomm is great and high up on design, but it must fix its area of licensing, and prove that it can grow everywhere, in all angles.