Shares of Intel
The chipmaker opened the day at $48.76 per share, before falling to an intraday low of $47.48 per share. By market close, Intel had recovered slightly, finishing out the day at $47.68 per share.
Intel's 10nm Cannon Lake processors are being pushed back yet again. This time, the chipmaker has said they won't see a mass release until the second half of 2019. Intel's first 10nm silicon was originally slated for release in late 2016, but technical challenges encountered in shrinking transistors to ever-smaller scales led to the launch being delayed until 2017.
Earlier this year Intel confirmed that it would delay mass production of 10nm CPUs to 2019 due to "yield issues," but did not elaborate as to when in 2019 that would be. During the firm's second-quarter conference call on Thursday, however, Intel execs clarified that it would deliver the 10nm chips to consumer PC systems in time for the holidays.
It was also confirmed that the Core i3-8121U was a Cannon Lake 10nm process chip, while the use of "i3" and "8" in the name confirmed it was a low-specification, 8th-generation chip (just like Intel's Kaby Lake-R, Kaby Lake-G, and Coffee Lake processors), destined for use in mid-range notebook devices.
Though Intel reported strong results for the second quarter and raised its sales target for the full year, analysts focused instead on the company's timeline for its new 10-nanometer manufacturing. Intel will have chips using that technology in personal computers on sale in the second half of 2019, the company said Thursday on a conference call to discuss earnings. Server chips will follow after that, executives said. Improvements to semiconductor designs being made using existing manufacturing lines will keep Intel's offerings competitive in the meantime, the executives said.
"The setup is for Advanced Micro Devices to control both the architectural and process node aspects of the x86 [processor] market for years to come; a dynamic we have never seen before and structurally destructive for Intel's business model. We reiterate our Sell rating," Rosenblatt Securities wrote in a note on Friday. The analysts also said that Intel could lose its "near monopolistic position in CPUs that allowed for increased ASPs."
- https://www.cnbc.com/2018/07/27/intel-plunges-on-competition-concerns-product-delays.html
- https://www.theinquirer.net/inquirer/news/3036660/intel-10nm-cannon-lake-processors-delayed-again-until-late-2019
- https://www.bloomberg.com/news/articles/2018-07-27/intel-shares-tumble-as-new-chip-technology-seen-pushed-out-later