In the first quarter, the financial performance trends of Intel in the server segment disappointed many investors. The company only managed to increase revenue from components for cloud systems, while in other areas, both revenue and processor supply volumes declined. Interestingly, even under such conditions, Intel managed to increase the average selling price by one percent, which partially helped counteract the drop in processor sales.
Now, Morgan Stanley analysts , indicate that the shortage of Intel processors continues to manifest in unpredictable situations. It was previously thought that the server segment received priority for processor shipments, and thus the shortage impacted it to a lesser extent. According to Morgan Stanley representatives, this is not entirely true, and branded server processors may also suffer from the shortage.
In particular, experts believe this will prevent Intel from maintaining a positive trend in the average selling price amidst falling sales volumes, as seen in the previous quarter. Consequently, the trend may turn negative not only for quantitative metrics but also for monetary indicators. Last quarter, Intel attributed the limited demand for server components to excess inventory built up by customers last year, as well as weakness in the Chinese market.
Against the backdrop of worsening tensions between the U.S. and China, there is little expectation for a market rebound in China. Additionally, in the third quarter, competing 7nm AMD EPYC processors will be introduced, further worsening Intel's position in the server segment. The company's new 10nm Ice Lake-SP processors and 14nm Cooper Lake processors will not be available until next year.
Source: 3dnews.ru
