>> You could have manufactured enough ARC video cards to meet demand.
> Intel was at best breaking even and likely making a loss on each ARC card.
How do we know that?
It is true that Intel's AXG segment sustained a loss in 2022. But AXG included the ARC line, the HPC lines (CPU, GPU) and other AI support components.
Further complicating the 2022 numbers, most of the AXG revenue that year was intersegmental; Intel was selling to itself. In 2023, Intel reorganized and moved ARC into CCG. ARC P&L was buried and outside analysts were unable to even guess whether ARC was turning a profit or a loss.
> Intel was at best breaking even and likely making a loss on each ARC card.
How do we know that?
It is true that Intel's AXG segment sustained a loss in 2022. But AXG included the ARC line, the HPC lines (CPU, GPU) and other AI support components.
Further complicating the 2022 numbers, most of the AXG revenue that year was intersegmental; Intel was selling to itself. In 2023, Intel reorganized and moved ARC into CCG. ARC P&L was buried and outside analysts were unable to even guess whether ARC was turning a profit or a loss.
ref: https://www.sec.gov/Archives/edgar/data/50863/00000508632300...
https://morethanmoore.substack.com/p/intc-doubling-down-agai...