On July 27, Intel revealed its financial results for the second quarter of 2023. We’re finally seeing profits after two quarters of reported losses, and AMD’s financials suggest that its gains against Intel may be waning as the latter steps up its defense.
For the duration of the pc\., Intel was without a doubt the market leader in the processor space. However, as is frequently the case with companies in a dominant position, the company’s decline from that position was caused by internal decisions made by a board that has since been replaced and a CEO who has since left.
Because it maintained its manufacturing capabilities and didn’t experience many of the supply issues that some of its fabless competitors did, Intel was able to weather the pandemic relatively well in the beginning, making it unique in the industry. This benefit was, however, somewhat offset by shortages in other components because other parts in products that Intel manufactured were limited.
This week, let’s discuss Intel’s comeback, and we’ll wrap up with my Product of the Week, the A770, Intel’s ARC GPU, which you might want to take into consideration if you’re constructing a showcase PC like the one I just finished.
Intel’s Significance
Intel is currently more significant as a microprocessor manufacturer than as a microprocessor company, owing to the current state of unpredictability in global politics.
Taiwan, which China threatens to attack and destroy, houses a large portion of the world’s microprocessor capacity. In a war, the capacity to manufacture cutting-edge weapons will be closely linked to the manufacturing capacity that would be lost in the early stages of the conflict, either by blockade or destruction.
Even if other regions of the world have more manufacturing capacity, it would not be enough to offset any potential losses in Taiwan. Relocating parts internationally would be challenging in a large-scale conflict like the one that China is expected to start. China has been purchasing or seizing control of some of these extra resources aggressively, limiting the supply to what can be produced domestically in order to win that war.
Intel’s intense concentration on drafting the Chips Act to increase manufacturing capacity in the U.S. S. would be essential to the U.S. S. staying alive through upcoming pandemics and conflicts, especially one with China, making the business a vital resource for the U.S. S. that would require safeguarding.
Additionally, Intel handles the majority of the work to protect x86 against rival technologies like ARM, even though ARM’s most recent actions have diminished its appeal. The U.S.’s dominant position in the technology industry is still threatened by foreign competition. S. in microcontrollers. The majority of the work in maintaining and developing x86 developer support is also carried out by Intel. For the x86 platform, which is still widely used in PCs, workstations, and servers, failure would be difficult.
In other words, it is imperative that Intel survives for the U.S. S. additionally Western nations that have made large investments in x86 technology. Despite its excellent performance, AMD is not yet able to completely replace Intel.
Restructuring a Business
CEO of Intel Pat Gelsinger is well aware that corporate turnarounds are difficult; he is currently leading his second significant turnaround attempt after successfully reviving VMware prior to rejoining Intel. But the story with Intel is much more nuanced. VMware was simply performing poorly when Gelsinger took over.
By comparison, Intel found itself in a worse situation when Gelsinger assumed leadership. The root of the company’s problems was a string of poor choices made before both Gelsinger and his immediate predecessor, Bob Swan, who had done a commendable job leading the company despite coming from a CFO background. He led Intel as best he could, but as a financial expert he was unfit to lead the company.
At Intel, Gelsinger took over a company that was in a self-destructive cycle, underfunded vital projects, and disgruntled staff. The turnaround at Intel is still ongoing, and it wasn’t without some missteps, such as reducing the pay of the remaining staff members and firing some of them. These choices have the potential to turn staff members against management, which could be fatal to the business due to unanticipated turnover and a hostile work environment.
Employees at Intel nevertheless rose to the occasion and produced a respectable quarter, giving rise to optimism that the company is now emerging from the shadows and will only get better before its new production facilities are operational.
Competition for Intel
AMD, Nvidia, and Qualcomm are the three main rivals of Intel. Lately, AMD and Nvidia have both been operating like champs with no apparent errors; Nvidia has overtaken Intel as the company to watch in Intel’s space as it makes use of its GPU capabilities, as Intel’s attempt to acquire ARM and establish a strong CPU presence has failed.
Due to Apple and other customers’ attempts to drive the company out of business, Qualcomm has experienced difficulties of its own. It also lacks a true PC solution, which it should address by putting more pressure on Intel to compete next year.
Since AI is currently driving the market and Nvidia owns AI, the company has almost reached previously unheard-of valuations, making Nvidia Intel’s biggest short-term challenge. In order to compete, Intel must have a far stronger presence in robotics, artificial intelligence, and self-driving machinery, including automobiles. The competitive landscape will be shaped by this AI war, and it will be challenging to overtake Nvidia.
Based on its recent financial results, Intel appears to be poised for even greater success in the future. That being said, it will be very challenging to overtake Nvidia unless it makes the same mistakes as Intel.
Finishing Up
The company is making a strong case for its comeback, and OEMs should feel more confident in Intel’s ability to deliver after seeing its Q2 financial results.
Should the company continue to operate as it currently does, its AI-focused components will be fully visible in 2019 with some products that, while competitive on paper, should be game-changing. Even so, at that point it will have to contend with all of the competitors’ next-generation components. This fight, which is probably going to get ugly, is one that no one is going to miss.
Who will prevail in the AI wars is by no means determined. Though Intel is getting organized and will now make this a fair fight, I was concerned that it was outmatched until these recent financials. Even though Nvidia currently has a significant lead, AI is still in its infancy, so until it matures, there will probably be a lot of leadership changes. Now that those adjustments have been made, there’s a chance that Intel will rise to its former heights.
The Intel staff deserves recognition for their heroic efforts during a trying period, which included facing income reduction and layoffs, all while securing a crucial quarterly victory for the company. I had anticipated a downward spiral at the company following these difficulties. It now seems to be well on the road to recovery, though.
GPU Intel ARC A770
Intel sent me two of their new graphics cards, the A770 and the A750, to test out before the end of the previous year. I was unable to get them to work until now. The majority of us now test on AMD-based systems because Intel stopped sending out desktop review systems or parts a while ago. Sadly, the new AMD systems are not good for these Intel graphics cards.
However, on an Intel box, the cards’ performance was impressive, and they tested better on 3DMark than similarly priced cards from AMD and Nvidia. If you have an AMD-based desktop, don’t even consider one of these cards.
Because the two cards’ performances were so similar, I came to the conclusion that appearance would have a greater influence over choice than performance. A lovely shade of blue illuminates the A770. As can be seen here, the card looks great displayed in a GPU display case.
It’s interesting to notice that older AMD and Nvidia cards used to light up beautifully, but they no longer do because the lights are typically so dim in cases where the card mounts flat on the side. However, the illuminated fans and features on a GPU card display case really bring the card to life.
Through my 3DMark testing, the Intel ARC A770 ($438) beat AMD’s new Radeon 7600 ($269) and matched Nvidia’s new 4060 Ti ($399) in performance.
The A750 is priced around $200 less than the 4060 Ti and closer to the Radeon 7600, so if you don’t need the lighting, go for it. However, there was no discernible performance difference between the A770 and the A750 I wish Intel had adopted a standard lighting interface. a
The A770 was recently discontinued by Intel, but it is still accessible on Amazon. In addition, the Predator BiFrost A770, which costs $340, performed even better in terms of lighting. The Intel A750, on the other hand, is remarkably affordable at $219, making it possibly the best deal available. These can all be found on Amazon, but prices are subject to change, so compare prices.
I have developed three systems in the past few weeks, two AMD and one Intel, and I am completely enamored with the HYTE Y60 GPU display computer case. As it happens, your GPU is showcased as if it were the star of the show, which is how modern GPUs look, and it is a simple case to work on.
Additionally, I use the ID-Cooling Zoomflow 240X ARGB CPU water cooler, which is an incredible cooler for $70. You can modify the lighting using the motherboard lighting controls. In terms of usability, I also tend to prefer MSI motherboards. I build new PCs every summer, and nothing makes people stop and take notice of your office like a lighted, custom-built PC that you built yourself.
I was impressed by how quiet all of the cards were during this most recent testing round, but if aesthetics matter, the Intel A770 was by far the most attractive and deserving of consideration in a GPU display case, earning it my Product of the Week.
Alternatively, the card is available in a much better-looking and significantly more affordable Predator BiFrost version.