Intel Exec Says Over 15M Windows AI PCs Shipped Since Launch; Export License Restriction In May Impacted Q2 Client Business In China; Sees Weaker Q3 Spending In Consumer And Enterprise Markets, Especially China; Dependence On External Wafers For AIPC Chip Ramp To Pressure Gross Margins; Transition Of Intel 3, Intel 4 Wafers To Ireland Facility Saved $1B, Will Improve Long-Term Gross Margins; Expects Sequential Growth In Data Center Through H2 As Demand For Traditional Servers Improves
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Intel reports that over 15 million Windows AI PCs have been shipped since launch. However, export license restrictions in May impacted Q2 client business in China, and weaker Q3 spending is expected in consumer and enterprise markets, especially in China. Dependence on external wafers for AIPC chip ramp will pressure gross margins, but transitioning Intel 3 and Intel 4 wafers to an Ireland facility saved $1 billion and will improve long-term gross margins. Sequential growth in the data center is expected in H2 as demand for traditional servers improves.
August 01, 2024 | 9:47 pm
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Intel shipped over 15 million Windows AI PCs but faces challenges due to export license restrictions impacting Q2 client business in China and weaker Q3 spending in consumer and enterprise markets, especially in China. Dependence on external wafers for AIPC chip ramp will pressure gross margins. However, transitioning Intel 3 and Intel 4 wafers to an Ireland facility saved $1 billion and will improve long-term gross margins. Sequential growth in the data center is expected in H2 as demand for traditional servers improves.
While Intel has achieved significant shipments of Windows AI PCs, the company faces short-term challenges due to export restrictions and weaker spending in China. The dependence on external wafers will pressure gross margins, but the transition of wafer production to Ireland is a positive long-term move. Expected growth in the data center segment in H2 provides a balanced outlook.
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