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Intel: New technology is causing problems

Intel: New technology is causing problems; Intel has grown unusually strongly in the past quarter. Nevertheless, investors drop the stock by more than ten

Intel: New technology is causing problems
Yazar: Zack Smith

Yayınlanma: 25 Temmuz 2020 19:15

Güncellenme: 18 Kasım 2024 04:44

Intel: New technology is causing problems Intel has grown unusually strongly in the past quarter. Nevertheless, investors drop the stock by more than ten percent. This is not only because the tailwind is abating again. The chip giant again has problems with the next technological development stage. The expansion of data centers in the corona crisis gave the chip giant Intel a strong boost in the past quarter. Consolidated sales increased 20 percent year over year to $ 19.7 billion ($ 16.9 billion). Data center business soared 43 percent to $ 7.1 billion. The corona crisis had made it necessary to expand network capacities due to the move to the home office and the increased use of streaming services. The need for chips for it is now decreasing, said Intel's chief financial officer George Davis.  

Intel boss Bob Swan

  Because more notebooks for home work have been bought in the past few months, Intel has increased sales in its computer chip division by seven percent to $ 9.5 billion. At the same time, the group had to postpone the introduction of a new chip generation by another six months. Intel shares lost more than ten percent in after-hours trading on Thursday. The processors with structure widths of seven nanometers are expected to come into the first computers by the end of 2022, said Intel boss Bob Swan. That would be a year later than originally targeted. The lower the structure widths, the more processors fit on a semiconductor wafer during production. In addition, the chips work more efficiently and energy-saving. The problem with Intel's 7-nanometer production is that it sheds too many unusable chips. In order to be able to work profitably, low error rates are important in chip production. Intel has now found the causes of the problem and is eliminating them. At Intel, the transition to 10-nanometer technology, which the company is now focusing on for the time being, had already been delayed. You might also be interested in:

16.06.2020 Intel Daily Analysis

 
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