I thought it was a great earnings call. I loved seeing Paul and Stacy finally slap some of the totally worthless analysts down. They have been deserving it for years.
And we got good information on what to expect. Continuing to be a bit slow in the first half but with some significant acceleration in the second half. Paul is expecting stronger world economic improvement in the second half.
And Paul and Stacy definitely think that Intel is bringing the full load in 2013 and think ARM will buckle under that load. No doubt that Intel expects to lead in power efficiency as well as performance. No doubt Intel expects to bring a lot of state-of-the-art capacity on line and doesn't expect to share it with competitors, only with strategic partners. Now I wonder who those could be?
So, best guess is that Intel was very conservative with the first quarter number and I would expect it to be an easy beat. No upside for shorts on the next call. I like that.
In general, I expect the economy to improve and produce an environment better than Intel's conservative forecast. I think Intel will have a good year and if a couple of deals break their way, then they will have a fab-u-lous year.
Hats off to Intel for a good performance in a tough environment and for continuing, without any abatement, the process necessary to win the mobility war. Good job...
After some of these other earnings announcements, Intel is looking much better. Regardless, we are another day closer to full volume 14nm production and the end of life for ARMH as they have known it. Did they think it would go on forever?
Is my understanding correct? The price dropped after hours because their CAPex is increased by $2 billions? It looks like the additionally $2 billions on CAPex will continue into year 2014 and perhaps 2015?
All and all, their available cash was $18 billions at the end of 4th quarter, right?
I liked the CC. It went very well. Yes there were a couple of analysts that were trying to throw rocks at Intel but they handled it perfectly.
Key takeaways that I saw:
1. Inventory problems that hurt this quarter have largely been dealt with and should not be a problem going forward.
2.Profit margins are higher for this quarter and future quarters than anyone expected.
3. Capex will be higher than expected. Some folks will make hay out of this but Intel explained that most of it was normal. The extra is due to migration to larger wafer size. The larger wafer size should improve efficiency down the road and will reap margin benefit down the road. Intel already the most efficient fabs in the world and they are going to keep it that way.
4. Intel is moving aggressively into Mobile chips. This will benefit them as time goes on.
Don't let the bears scare you. 2013 will be a transition year but a growth year with things picking up nicely toward the end of the year.