IT Semiconductor 22 10 2012 26 10

IT: Semiconductor 22. 10. 2012 – 26. 10. 2012 Egorova Y. , Matviets L. 1

New trend: Hybrid ‘Laplets’

New trend: Hybrid ‘Laplets’ Pros Cons “I do believe the convertibles have the ability to draw consumer attention, ” IHS i. Suppli analyst Craig Stice “We think that a convertible done right is going to give people a good blend of capabilities, ” Intel’s director of ultrabook marketing Karen Regis “Hybrid devices will not drive the overall growth [of the PC market] as long as the price point is higher than the $700 range, ” Gartner analyst Mikako Kitagawa Egorova Y. , Matviets L. 3

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Advanced Micro Devices is launching a new series processors (FX processors) for highperformance computers such as game machines. The most high-powered model: FX-8350 (4. 0 GHz, 8 cores) Main competition: Core i 5 -3570 k Ivy Bridge (3. 4 GHz, 4 cores)

L 2 Cache performance 21021 Write, Mb/s 40468 16815 Read, Mb/s 70907 0 20000 40000 60000 80000 Memory Bandwidth 10542 Write, Mb/s 19613 14972 Read, Mb/s 20458 0 10000 20000 30000

AMD announced a number of strategic actions: Delevering From The PC Space AMD has set a long-term goal to have only 4050% of its revenues depend on the traditional PC space. Staff Cuts AMD will be cutting its workforce by 15% to be able to become cash flow break-even at a lower revenue rate Egorova Y. , Matviets L. 7

Significant headwinds going forward: Intel Will Be Ruthless the company has shown an intense aggressiveness to become at least on-par with AMD in terms of integrated graphics Nvidia Will Be Ruthless the company needs a cash cow. That would be the gaming and professional graphics businesses, coupled with the blossoming HPC accelerator business. Egorova Y. , Matviets L. 8

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Q 3 Results Expectations On average, Wall Street analysts expected a profit of 42 cents per share, on revenue of $3. 35 billion. Forecast Report: 4 th quarter earnings of 23 to 31 cents per share Revenue from $2. 83 billion to $3. 07 billion Analysts: Profit of 42 cents on larger revenue of $3. 24 billion Reality 3 rd quarter net income: $784 million (67 cents per share) compared with $601 million (51 cents per share) in the year-ago period Revenue fell 2. 2% from last year to $3. 39 billion. Egorova Y. , Matviets L. 10

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Intel expectations: $13. 6 billion Q 4 revenue (2% less than in Q 4 2011) gross margin of 57% (average for the last 3 years is 64 %) Analysts forecast: $13. 7 billion Q 4 revenue • strong levels of free cash flow • solid balance sheet position (with $14. 8 B in gross cash) • basically the position Q 2 2012 • dividends and share repurchases The rating was downgraded by: Piper Jaffray, Zacks, Sterne Agee, BMO Capital Markets, UBS AG, Stifel Nicolaus, Wells Fargo Securities

Creation of the Cyber Security Research Alliance (CSRA) members: Intel Corporation, Advanced Micro Devices, Lockheed Martin, Honeywell, RSA etc. aim: to solve the increasing number of problems concerning cyber security

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Bad news the new 13" Mac. Book Pro with Retina Display has Intel’s integrated graphics FBR Capital downgraded shares of NVIDIA (NASDAQ: NVDA) from an outperform rating to a market perform rating in a research note released on Friday morning Good news Nvidia's graphics chips are aimed at gamers who require high performance so resilience to tablets’ expansion is likely to appear The new i. Mac will come with Nvidia's new Kepler line of GPUs as standard equipment i. Pad mini price is higher than expected Egorova Y. , Matviets L. 15

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