Latest news with #OpenFOAM
Yahoo
27-04-2025
- Business
- Yahoo
Intel: Now Or Never
After a series of missteps over the years, Intel, once the market leader and a sign of innovation, lost its position. It is now facing substantial financial pressure as losses pile up. However, its last move, given the market's circumstances, could change direction and save it, putting it in a formidable position. Intel's revenue is a cause of concern as in 2022, 2023, and 2024, it had declines in sales of 20.2%, 14%, and 2.1%, respectively. Although the rate of decline is decreasing as well, this could get back to double-digit levels if the company does not stop losing market share. In the profitability side, the company went from a mid-30% net income range in 2019 to a 7.2% loss in 2024. This reveals difficulties in pricing its products competitively and a massive capital expenditure related to manufacturing expansion. Free cash flow turned negative in 2022, and since then, the loss margin has been in the high 20s Intel's product line shows signs of revitalization, with processors rivaling AMD's gaming. This shows a much-needed technical upgrade from past versions, where they consistently fell behind AMD. On the server side, performance benchmarks show that the new Granite Rapids platform outperforms the competition. As presented by Phorinix in the following tests: GROMACS is a molecular dynamics package mainly designed to simulate proteins, lipids, and nucleic acids. Granite Rapids GROMACS performance (Source Phoronix) OpenFOAM is a C++ toolbox for developing customized numerical solvers and pre-/post-processing utilities for solving continuum mechanics problems, most prominently including computational fluid dynamics. Granite Rapids OpenFOAM performance (Source Phoronix) NAS Parallel LU The NAS Parallel LU is a Lower-Uppersymmetric Gauss-Seidel kernel that requires a good memory and compute bandwidth balance. The discrete GPU efforts are yielding products with reasonable performance, getting close to AMD, and a price advantage, with the best price per FPS. However, competition against NVIDIA is yet to be seen, as the ecosystem for NVIDIA GPUs is now the most robust. Warning! GuruFocus has detected 7 Warning Signs with INTC. With the new tariffs implemented and the ever-increasing tensions, domestic production of high-performance chips is growing in importance. Taiwan, where TSMC is located, has been constantly under the risk of annexation by China and will be one of the first places to be invaded in a case of escalation. This is a significant security threat for the US, which depends on its production. Companies like Apple, NVIDIA, AMD, Broadcom, and Qualcomm all depend on TSMC's manufacturing power. To address this problem, the US government has created the CHIPS Act, with $39 billion directed to semiconductor manufacturing projects, which signals interest in the matter. Due to the industry's capital-intensive nature -Intel's capex is already over $25 billioneven more funds could be approved. Intel is leading the charge on domestic production. While AMD, Apple, and NVIDIA will use TSMC's plants in the US, Intel is building its own. This reduces costs, keeps earnings local, and avoids the risk of TSMC being overloaded with orders or plagiarizing technology in the case of falling into China's control, making Intel an ideal candidate for government aid. The cornerstone of Intel's turnaround is its IDM 2.0 strategy, which aims to restore manufacturing leadership while simultaneously building a foundry services business. This dual approach requires unprecedented capital expenditure, with the company moving from $16 billion in 2019 to over $25 billion in 2022 and 2023. If Intel's plans work out. It'll be the only PC/server company to develop and produce its chips in the US at scale, beating (at least for a moment) AMD in the long-standing battle between the two. Investors seem to be overlooking this possibility, as Intel is trading below AMD's and peer numbers. Intel trades at relatively undemanding multiples compared to its semiconductor peers, with a P/S ratio of 1.54 versus the industry average of 2.38 and a 4.39 for AMD. This discount reflects the current sentiment about the company since its missteps. The valuation incorporates significant skepticism regarding Intel's ability to restore technology leadership and manufacturing competitiveness. Under these circumstances, if the company executes its roadmap successfully and takes back its place and market share, there is substantial upside potential from current levels. GuruFocus's valuation of the company seems to consider this and serves as a point of reference for the company's fair price. Intel's balance sheet has deteriorated as the company funds its manufacturing transformation. Long-term debt increased substantially, from $33 billion in 2020 to over $46 billion by 2024. The company's decision to cut its dividend by 66% in early 2023 signaled the financial pressure created by its capital-intensive strategy. The CEO of TSMC has seen the risk of being replaced and now wants to invest $100 billion in US soil to manufacture its technology there. However, the deal needs to be approved by the Taiwanese government, and fears of losing the protective effect of the semiconductor business might disincentivize the approval. This movement can be seen as TSMC trying to flee Taiwan, leaving behind the risks of annexation by China and an unprotected country. Hence, the approval is unlikely when national interests weigh more. Intel faces intensifying competition across its business units: Data centers: AMD has leveraged TSMC's manufacturing advantages to deliver superior performance per watt, increasing its server market share from single digits to 33% by Q1Y2024. Furthermore, since its unit market share is 23.6%, that means AMD chips command a higher price per unit. Nvidia with its GPUs being more efficient for AI applications, has completely dominated the AI accelerator market, with Intel's efforts in this high-growth segment yielding minimal traction. Client computing: Apple moved away from Intel to create its own processors, yielding high performance and never-before-seen battery life. At the same time, AMD's chips are becoming the go-to for Windows machines. Intel represents a high-risk, potentially high-reward investment proposition. With current levels of instability at an all-time high across most industries, the stock price presents a strong appeal. The current trade war can be a tailwind for the company and one of the few to come out of this with a positive experience. However, this position should be sized conservatively within a diversified portfolio, acknowledging the substantial execution risks. Intel's plans will require years to materialize, testing investor patience. Yet for those who can maintain a truly long-term perspective, the company's combination of engineering talent, manufacturing scale, and governmental support provides a foundation for potential value creation that the market may be underappreciating. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Intel: Now Or Never
After a series of missteps over the years, Intel, once the market leader and a sign of innovation, lost its position. It is now facing substantial financial pressure as losses pile up. However, its last move, given the market's circumstances, could change direction and save it, putting it in a formidable position. Intel's revenue is a cause of concern as in 2022, 2023, and 2024, it had declines in sales of 20.2%, 14%, and 2.1%, respectively. Although the rate of decline is decreasing as well, this could get back to double-digit levels if the company does not stop losing market share. In the profitability side, the company went from a mid-30% net income range in 2019 to a 7.2% loss in 2024. This reveals difficulties in pricing its products competitively and a massive capital expenditure related to manufacturing expansion. Free cash flow turned negative in 2022, and since then, the loss margin has been in the high 20s Intel's product line shows signs of revitalization, with processors rivaling AMD's gaming. This shows a much-needed technical upgrade from past versions, where they consistently fell behind AMD. On the server side, performance benchmarks show that the new Granite Rapids platform outperforms the competition. As presented by Phorinix in the following tests: GROMACS is a molecular dynamics package mainly designed to simulate proteins, lipids, and nucleic acids. Granite Rapids GROMACS performance (Source Phoronix) OpenFOAM is a C++ toolbox for developing customized numerical solvers and pre-/post-processing utilities for solving continuum mechanics problems, most prominently including computational fluid dynamics. Granite Rapids OpenFOAM performance (Source Phoronix) NAS Parallel LU The NAS Parallel LU is a Lower-Uppersymmetric Gauss-Seidel kernel that requires a good memory and compute bandwidth balance. The discrete GPU efforts are yielding products with reasonable performance, getting close to AMD, and a price advantage, with the best price per FPS. However, competition against NVIDIA is yet to be seen, as the ecosystem for NVIDIA GPUs is now the most robust. Warning! GuruFocus has detected 7 Warning Signs with INTC. With the new tariffs implemented and the ever-increasing tensions, domestic production of high-performance chips is growing in importance. Taiwan, where TSMC is located, has been constantly under the risk of annexation by China and will be one of the first places to be invaded in a case of escalation. This is a significant security threat for the US, which depends on its production. Companies like Apple, NVIDIA, AMD, Broadcom, and Qualcomm all depend on TSMC's manufacturing power. To address this problem, the US government has created the CHIPS Act, with $39 billion directed to semiconductor manufacturing projects, which signals interest in the matter. Due to the industry's capital-intensive nature -Intel's capex is already over $25 billioneven more funds could be approved. Intel is leading the charge on domestic production. While AMD, Apple, and NVIDIA will use TSMC's plants in the US, Intel is building its own. This reduces costs, keeps earnings local, and avoids the risk of TSMC being overloaded with orders or plagiarizing technology in the case of falling into China's control, making Intel an ideal candidate for government aid. The cornerstone of Intel's turnaround is its IDM 2.0 strategy, which aims to restore manufacturing leadership while simultaneously building a foundry services business. This dual approach requires unprecedented capital expenditure, with the company moving from $16 billion in 2019 to over $25 billion in 2022 and 2023. If Intel's plans work out. It'll be the only PC/server company to develop and produce its chips in the US at scale, beating (at least for a moment) AMD in the long-standing battle between the two. Investors seem to be overlooking this possibility, as Intel is trading below AMD's and peer numbers. Intel trades at relatively undemanding multiples compared to its semiconductor peers, with a P/S ratio of 1.54 versus the industry average of 2.38 and a 4.39 for AMD. This discount reflects the current sentiment about the company since its missteps. The valuation incorporates significant skepticism regarding Intel's ability to restore technology leadership and manufacturing competitiveness. Under these circumstances, if the company executes its roadmap successfully and takes back its place and market share, there is substantial upside potential from current levels. GuruFocus's valuation of the company seems to consider this and serves as a point of reference for the company's fair price. Intel's balance sheet has deteriorated as the company funds its manufacturing transformation. Long-term debt increased substantially, from $33 billion in 2020 to over $46 billion by 2024. The company's decision to cut its dividend by 66% in early 2023 signaled the financial pressure created by its capital-intensive strategy. The CEO of TSMC has seen the risk of being replaced and now wants to invest $100 billion in US soil to manufacture its technology there. However, the deal needs to be approved by the Taiwanese government, and fears of losing the protective effect of the semiconductor business might disincentivize the approval. This movement can be seen as TSMC trying to flee Taiwan, leaving behind the risks of annexation by China and an unprotected country. Hence, the approval is unlikely when national interests weigh more. Intel faces intensifying competition across its business units: Data centers: AMD has leveraged TSMC's manufacturing advantages to deliver superior performance per watt, increasing its server market share from single digits to 33% by Q1Y2024. Furthermore, since its unit market share is 23.6%, that means AMD chips command a higher price per unit. Nvidia with its GPUs being more efficient for AI applications, has completely dominated the AI accelerator market, with Intel's efforts in this high-growth segment yielding minimal traction. Client computing: Apple moved away from Intel to create its own processors, yielding high performance and never-before-seen battery life. At the same time, AMD's chips are becoming the go-to for Windows machines. Intel represents a high-risk, potentially high-reward investment proposition. With current levels of instability at an all-time high across most industries, the stock price presents a strong appeal. The current trade war can be a tailwind for the company and one of the few to come out of this with a positive experience. However, this position should be sized conservatively within a diversified portfolio, acknowledging the substantial execution risks. Intel's plans will require years to materialize, testing investor patience. Yet for those who can maintain a truly long-term perspective, the company's combination of engineering talent, manufacturing scale, and governmental support provides a foundation for potential value creation that the market may be underappreciating. This article first appeared on GuruFocus. Sign in to access your portfolio
Associated Press
19-03-2025
- Business
- Associated Press
Krishnan & Associates Offers High-Quality, Cost-Effective Outsourced CFD Modeling Services
Leveraging Offshoring to Deliver Advanced CFD Solutions with Cost and Efficiency Benefits 'In energy & infrastructure, balancing cost & innovation is key. K&A's outsourced CFD solutions cut expenses by 50%, enabling clients to reinvest in R&D, design, & innovation—boosting efficiency & ROI.' — Ravi Krishnan, Managing Director, K&A STAMFORD , CT, UNITED STATES, March 19, 2025 / / -- Krishnan & Associates, Inc. (K&A), a leader in outsourced Computational Fluid Dynamics (CFD) modeling services, is helping companies in the energy, utilities, manufacturing, chemicals, and heavy-duty industries reduce costs and improve efficiency. With remote CFD engineers offering expert fluid dynamics simulation, thermal analysis, and aerodynamics modeling, K&A ensures businesses receive high-quality, cost-effective CFD solutions tailored to their needs. K&A's outsourced CFD solutions provide advanced-degree professionals with 3 to 20 years of experience in CFD simulation for energy and power applications, combustion modeling, heat transfer analysis, aerodynamics, and multiphase flow simulations. By leveraging offshore CFD engineering services, clients gain the advantage of time zone efficiency, allowing CFD simulations and fluid dynamics analyses to be completed overnight—ready for review each morning. With licenses for leading CFD modeling software such as ANSYS Fluent, OpenFOAM, COMSOL Multiphysics, and Autodesk CFD, and access to a comprehensive library of CFD assets, K&A provides seamless collaboration via Zoom, Microsoft Teams, and other virtual platforms. Clients maintain full data security and confidentiality, with dedicated CFD analysts exclusively assigned to their projects—integrating seamlessly as an extension of their in-house engineering teams. The cost savings are substantial, with offshore CFD modeling reducing expenses by over 50% compared to in-house teams, allowing businesses to reinvest in advanced R&D, design optimization, and product innovation within the U.S. Krishnan & Associates remains committed to delivering high-quality, efficient, and confidential CFD engineering solutions that support the evolving needs of global industries. About Krishnan & Associates Krishnan & Associates is a full-service power and energy industry consulting firm providing specialized marketing, market analytics, mergers and acquisitions, and recruitment services. Our services include outbound lead and demand generation, content creation, technical white papers and reports, regulatory and market research, energy market analysis, digital webinars, seminars, and conferences. We provide offshoring of specialized CFD modelling & engineering services, market development activities for a range of energy transition technologies, including nuclear, renewable power generation, energy storage, carbon capture, hydrogen, grid modernization, digital and grid software technologies. For more information on how K&A's outsourced CFD modeling services can benefit your organization, please contact: +1 203-257-9232 X Other Legal Disclaimer:
