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Intel Posted Sales For Q4 2019 Better Than Expected, But 2020 Is A Challenging Year.

The big picture: Intel beat Analyst forecasts revenue of more than $20 billion for the fourth quarter of 2019, primarily due to increased demand for its server chips. In the first half of 2020, the company expects to do particularly well, but AMD still has an opportunity to ship more market share in consumer space.

Since Samsung suffered a significant decline in sales due to an overseas supply of DRAM and NAND chips coupled with weak competition, Intel has récently reclaimed its status as the world’s biggest selling semiconductor vendor. But more importantly, Intel’s server processors are very demanding and Xeons like hotcakes are marketed by the company to technological giants who want to improve their data centre. With sales rising 8% over the year to $20.2 billion, Intel announced excellent earnings for Quarter 2019.

As no one predicted a significant 19 per cent increase for the data center sector, the company was able to meet analyst expections of 19.2 billion dollars. Investors were very satisfied with the results and sent shares up to 7% after hours of trading.

The Clients ‘ Computing Group reported over $10 trillion in sales, which is impressive, up 2 percent year-over-year and higher than its projected $9.75 trillion, despite strong pressure from AMD on the consumer CPU market.

Revenues of over $1.2 billion were produced in memory and storage devices, which was a bit subdued but not surprising in view of other manufacturers like Samsung, Micron and SK Hynix’s effect on the market.

Also like Intel a lot IoT projects have scaled back, The Things Group’s Internet generated revenues of not less than $1.16 billion. All this made shareholders happy because over the course of last year they earned returns of $19.2 billion. Intel expects to produce a record $73.5 billion in sales for the first quarter for 2020, of which $19 billion will come, but we will have to wait and see whether the company is able to address its customer chip supply problems.

For now, Intel has been claiming that Samsung is using 14 nm chips to complete orders, and it looks like AMD still has an enormous chance to gain a market share in the user sector.

Intel does not seem to be relying too much on the consumer side to beat AMD. The new leadership of CEO Bob Swan in the company means he is ready to take hold of traditional markets for new markets.

Intel’s recent purchase of Habana Labs in the sum of two billion dollars, which is a proof of its investments in AI, as well as the recruitment of a former AMD management to manufacture discrete GPUs. Intel is, if anything, on the right path with new leadership, yet it needs to be up to 7 nm and beyond during the course.

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