While this is an Ashraf article, and we all know what that means, info in here is taken from Swan's call, so it's actually worth a read for a change.
During the call, Swan provided insight into some of the challenges -- he referred them specifically as "headwinds" -- that the company must cope with during 2019. Let's take a closer look at them.
https://www.fool.com/investing/2018/11/11/3-risks-to-intels-business-in-2019.aspx
@qdy - Agreed, but with 14nm (and all the +++) outliving their original lifespan, will those progressively higher margins offset the 10nm ramp costs? BS has earned his keep moving the money around, that's for sure. I think the top line ceiling and competition will be bigger issues. Trade is just too hard to call, by anyone.
It’s in the tea leaves when they ramp 10nm next year they got to disclose the finances high cost and low yield. All the capital spent will trigger when they ramp, ouch
Ashraf is Master of the Obvious.
To pile on, when production is tight (like most of this year), Intel only sells the higher-ASP products - IOTG and the smaller CCG products are toast for those unlucky customers who didn't make it through allocation. Couple that with new products ramp with massive ASP boos (Skylake Xeon), and you get a positive perfect storm for the year that has no chance of a 2019 repeat. The Street has huge resistance at 50, which Intel couldn't even cross given their strong 3Q results and 2018 forecast.
Wheeee!