Intel 2Q17 Earnings Call Notes

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Brian M. Krzanich – Intel Corp.

Bought Mobileye

“We expect to close the acquisition of Mobileye in the third quarter, several months earlier than expected. Autonomous driving is a massive compute workload that will disrupt industries and save lives and we are investing to win in this important segment”

PC TAM down 15% vs four years ago

“We’re executing well to our strategy to transform from a PC-centric company to a data-centric company that powers the cloud and billions of smart and connected devices. The PC TAM is down more than 15% versus four years ago. Despite that headwind, our revenue is up more than 15% and our operating profit has grown more than 30%. More than 40% of our revenue now comes from our data-centric businesses outside the PC sector”

Look, enterprise is going to continue to decline

“look, enterprise is going to continue to decline. We estimate, and again, this is just based on what we get from our customers, talking to the industry. It’s going be in the high single-digit decline. I think you’ll see quarters like Q2 that was 11%. You’ll see quarters like Q1 that were 3% or 4%. We’ve seen quarters higher than the 11% over the last couple years. So it’s going be lumpy as we see this shift, but the overall macro shift of enterprise to cloud or traditional on-prem systems to cloud is going to continue.”

Move to 3D X-Point

” And our real goal is then to move more and more of the business towards the 3D XPoint as we move into next year because that really differentiates us again as we really change the hierarchy between memory and storage as the data center DIMM memory systems come out.”