I may be long Intel, but this unqualified assertion without cite is certifiable bullshit at face value.
From the latest 10-Q filings for Intel[1] and AMD[2], this is what the numbers are saying for 2022 YTD:
(In millions) | INTC | AMD | Diff |
====================|=========|=========|=======|
Revenue | 49,012 | 18,002 | 36.7% |
Cost of sales | 27,646 | 9,802 | 35.5% |
--------------------|---------|---------|-------|
Gross margin | 21,366 | 8,200 | 38.4% |
Operating expenses | 17,900 | 6,787 | 37.9% |
--------------------|---------|---------|-------|
Operating income | 3,466 | 1,413 | 40.8% |
Net income | 8,678 | 1,299 | 15.0% |
--------------------|---------|---------|-------|
Adjusted net income | 3,580 | 1,299 | 36.3% |
- Intel's non-operating income (~80%/20% split between equity investments/interest and other) accounts for $5.098B and is 147% relative to operating income YTD! Adjusting this out of the picture tells a different story about pound-for-pound operations.
- Compared to AMD's $135M Q3 tax benefit, Intel recognized a massive $1.207B boon! Both companies swallowed operating losses this quarter (Intel -$175M v. AMD -$64M); without this tax benefit, YTD net income for both companies would have taken a hit. I keep this benefit in because Intel operates fabs, and much of that benefit was attributable to "a change in tax law from 2017 Tax Reform related to the capitalization of R&D expenses that went into effect in January 2022."
- Included in AMD's cost of sales and operating expenses are amortization of acquisition-related intangibles (Xilinx) to the tune of $1.005B and $1.499B, respectively. When this acquisition-related cost disappears, we can expect AMD's gross margins to substantially increase as you'd expect from a fabless design house.
Keeping it real.
[1] https://www.sec.gov/Archives/edgar/data/50863/00000508632200...
[2] https://www.sec.gov/Archives/edgar/data/2488/000000248822000...