The largest maker of PC and datacenter processors Intel had gained market share during the fourth-quarter as its earnings and revenues beat Wall Street’s expectations.
The CEO of the company Bob Swan also expressed confidence that the company will do well in the short term.
For the entire of 2019, Intel generated revenue of $3.8 billion from its Artificial Intelligence (AI) business, Swan said. It is expected that the global market for AI will touch $25 billion by 2024.
Over the past couple of years it has not been smooth sailing for Intel. It had to replace its CEOs, there were significant delays in its development of the critical 10-nanometer (nm) manufacturing process and the company was unable to step up production to meet market demands. The company also had to face tough competition from rivals such as Nvidia and Advanced Micro Devices in the area of datacenter and AI chips.
For the fourth quarter, there was a 10 per cent growth in its PC business, Intel said while a 8 per cent growth in its overall revenues which came in at $20.2 billion despite these issues. The better than expected earnings propped Intel shares by 5 per cent to close at $66.64 a share.
The company also separately announced the laying of some of its employees from its datacenter products group as it plans a reorganization of the business unit. While not spelling out the exact numbers, Intel confirmed that it expected that the number of layoffs would be less than 1 per cent of its total workforce. That makes the number lower than about 1,100 staff of the company.
“Changes in our workforce are driven by the priorities of our business, which we continually evaluate. As we move into 2020, our business units are focusing their resources on areas where we have the greatest opportunity for growth and, as part of that, some are planning to eliminate roles associated with projects that are no longer priorities,” said an Intel spokesperson in a statement.
The company further added that whenever possible, it had tried to transition employees or teams within the company and employs them in areas where there was need.
“We are committed to treating all impacted employees with professionalism and respect, and we continue to hire for critical skills, with more than 1,300 positions open in our key locations in the U.S. and globally,” the spokesperson said.
The company has also worked out that more than half of its total revenues were derived from “data-centric” business such as from processing, managing, and storing of the huge quantity of data that is generated from sources such as social media, smartphones, cars, internet of things, and computers, Swan said.
“Our journey is just beginning,” Swan said. “To reach our multi-year goals, we will continuously focus on three key priorities: accelerating growth, improving execution, and deploying our capital for attractive returns.”
During 2020, the company plans to make investments of $17 billion on capital expenditures, Swan said. Over the last two years the company had expended record amounts in capex. The investments made in capacity augmentation had helped the company to expand its PC CPU supply during the second half of 2019 by double digits quarter-on-quarter.
(Source:www.venturebeat.com)
The CEO of the company Bob Swan also expressed confidence that the company will do well in the short term.
For the entire of 2019, Intel generated revenue of $3.8 billion from its Artificial Intelligence (AI) business, Swan said. It is expected that the global market for AI will touch $25 billion by 2024.
Over the past couple of years it has not been smooth sailing for Intel. It had to replace its CEOs, there were significant delays in its development of the critical 10-nanometer (nm) manufacturing process and the company was unable to step up production to meet market demands. The company also had to face tough competition from rivals such as Nvidia and Advanced Micro Devices in the area of datacenter and AI chips.
For the fourth quarter, there was a 10 per cent growth in its PC business, Intel said while a 8 per cent growth in its overall revenues which came in at $20.2 billion despite these issues. The better than expected earnings propped Intel shares by 5 per cent to close at $66.64 a share.
The company also separately announced the laying of some of its employees from its datacenter products group as it plans a reorganization of the business unit. While not spelling out the exact numbers, Intel confirmed that it expected that the number of layoffs would be less than 1 per cent of its total workforce. That makes the number lower than about 1,100 staff of the company.
“Changes in our workforce are driven by the priorities of our business, which we continually evaluate. As we move into 2020, our business units are focusing their resources on areas where we have the greatest opportunity for growth and, as part of that, some are planning to eliminate roles associated with projects that are no longer priorities,” said an Intel spokesperson in a statement.
The company further added that whenever possible, it had tried to transition employees or teams within the company and employs them in areas where there was need.
“We are committed to treating all impacted employees with professionalism and respect, and we continue to hire for critical skills, with more than 1,300 positions open in our key locations in the U.S. and globally,” the spokesperson said.
The company has also worked out that more than half of its total revenues were derived from “data-centric” business such as from processing, managing, and storing of the huge quantity of data that is generated from sources such as social media, smartphones, cars, internet of things, and computers, Swan said.
“Our journey is just beginning,” Swan said. “To reach our multi-year goals, we will continuously focus on three key priorities: accelerating growth, improving execution, and deploying our capital for attractive returns.”
During 2020, the company plans to make investments of $17 billion on capital expenditures, Swan said. Over the last two years the company had expended record amounts in capex. The investments made in capacity augmentation had helped the company to expand its PC CPU supply during the second half of 2019 by double digits quarter-on-quarter.
(Source:www.venturebeat.com)
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