Intel admits past few months have been tough, partially because of its 'own execution issues'.
Intel's Accelerated Computing Systems and Graphics Group , which is responsible for its line-up of Alchemist graphics cards, has lost the company $507 million in the past three months. That is markedly more than it lost in Q1, 2021 which came in at $168 million.
A big chunk of that cash is caught up in"inventory reserves and roadmap investments", Intel explains. Alchemist is yet to hit the shelves anywhere outside of China, and may be further delayed according to recent leaks from YouTuberNow that sort of build-up of inventory is to be expected for a major product launch, but it has coincided with one of Intel's worst financial reports in years.
"The sudden and rapid decline in economic activity was the largest driver of the shortfall, but Q2 also reflected our own execution issues in areas like product design, DCAI, and the ramp of AXG offerings," CEO Pat Gelsinger says Intel is having to lower its expectations for AXG, stating that it will"not hit our GPU unit target."
He also elaborates slightly on why Intel hasn't been able to deliver Alchemist in a timely fashion, noting"COVID-related supply chain issues and our own software-readiness challenges caused availability delays that we continue to work to overcome."make AXG's appear small fry. "We remain on track to deliver over $1 billion in revenue this year. In Q2, we started to ramp Intel Arc graphics for laptops and OEMs, including Samsung, Lenovo, Acer, HP and Asus…. Intel Arc A5 and A7 desktop cards will start to ship in Q3," Gelsinger says.Your next upgrade