Intel reports growth of powerful data center, IoT

Intel crushed the guideline by 1.3 billion

On wednesday Intel Has announced its fourth fiscal quarter and full year 2021 results. The semiconductor maker smashed its own quarterly guidelines by $ 1.3 billion, ending the quarter with 19.5 billion non-GAAP revenue. Year after year the results have increased by 4%.

Intel’s Data Center Group (DCG) reported quarterly revenue of $ 7.3 billion, up 20% year-over-year. Intel noted that this is a record for the business unit. The company blames DCG’s strong numbers for recovering enterprise and government spending. The company’s Internet of Things group (IoTG) has sold $ 1.1 billion, up 36% year-over-year.

Pat Gelsinger, Intel CEO, calls Q4 a great finish for 2021.

“We’ve surpassed the top-line quarterly guidelines of $ 1 billion and provided the best quarterly and full-year revenue in the company’s history,” Gelsinger said.

In comments prepared after the announcement, Gelsinger singled out the results of Intel’s Data Center Group (DCG).

“… We’ve grown 20% year on year and that’s where we continue to be the preferred partner of cloud and data center customers. We expect that in December alone our Xeon shipments will surpass the total server CPU shipments by 2021 by all single competitors, ”Gelsinger said.

“The data center market was strong in Q4 across all geographies, led by the enterprise where the market recovery from the bottom of the coveted continued,” Gelsinger said.

Gelsinger says Intel has shipped more than 1 million servers equipped with its Ice Lake Zion processor, the same amount as the previous three quarters combined.

“All of our OEMs are currently shipping systems, and all of our major cloud customers have announced their third example with Amazon Web Services,” he said.

Gelsinger noted that Intel’s efforts are not limited to the core data center, but also on the edge. Including efforts to virtualize radio access networks (RANs).

“We are leading the transformation of the network where our Xeon and Flexran software is used in almost all vRAN commercial installations,” he said.

The new Xeon chip promises 30x profit

Gelsinger talks about Intel’s next-generation Zion server chip, codenamed “Sapphire Rapids”. There will be a limited supply of chips for selected customers this quarter, he said.

He spoke of the 30x total computing gain for Xeon with the new hardware, emphasizing performance under multiple workloads.

“This demonstrates that a general purpose CPU with built-in AI acceleration can solve more customer uses that once needed GPU acceleration,” Gelsinger added.

Gelsinger said that Intel predicts that data center, network and edge markets will continue to grow strongly due to 5G and Edge buildouts, continued investment by hyperscalers and innovations for artificial intelligence (AI).

Intel expects supply chain restrictions to continue through 2022 and 2023, Gelsinger said.

“The industry will continue to see challenges in a variety of areas, including specialty and overall foundry deficits, substrates and third-party silicon.” He said.