Intel shocked with profit jump 44%

The chip giant has said its second-quarter profit has increased by 44% thanks to the strong consumption of microprocessors, despite the fierce competition in the chip market and the recent massive product price cuts.

Specifically, Intel's net profit in the 4-6 months reached 1.28 billion USD, equivalent to 22 cents / share. Meanwhile, the same period last year, the company only 885 million profit equivalent to 15 cents per share. Immediately after this information, the company's stock price jumped to a record high of 52 weeks.

This achievement is also good beyond analyst expectations, which only thinks that Intel will get 19 cents a share again. Intel's revenue is also higher than Wall Street's forecast, reaching $ 8.68 billion in the second quarter, up 8% from the second quarter of last year.

However, it seems that investors have not been satisfied with Intel's rate of revenue in recent times, mainly because the price of microprocessors has been continuously adjusted down in time. over to deal with the Barcelona chip that AMD is about to release.

In addition, weak demand for the NOR flash memory chip (which is primarily used in cell phones) also affected Intel.

Rumor has it that Intel is seeking to sell off NOR, but its representatives declined to comment. Intel's chief financial officer Andy Bryant pointed out that " The best defense against competitors and the price pressure is to diversify products further ."

The one who laughs, the one who loves

Source: AP Everyone knows, the decrease in chip price has affected Intel's profit but not much. But rival AMD is not so lucky.

Low-cost Intel "forced" by Intel has caused AMD's profits and revenue to fall sharply in the past few quarters, to the point that many people have called the current situation "Sunny Days in Sunnyvale".

The simple reason is that because of the market value of 153 billion USD, Intel is 18 times bigger than AMD. In addition, Intel is also more agile in upgrading to modern chip manufacturing technologies that allow chip performance to be reduced, while reducing production costs.

" Intel's financial outlook is promising, only a few investors expect too much to be disappointed, " said Cody Acree of Stifel, Nicolaus & Co.

" This is the case where the stock itself is very good, but the expectations that investors put out are impractical, at least during these summer months when demand is not very high ."

For the third quarter of this year, Intel predicts revenue will reach between 9-9.6 billion and profit ratio will account for about 52% of this.

Trong Cam