>> The little gremlin's meltdown inspector, that wrecked havoc on almost all modern computer devices, aren't holding back Intel's cash machine, at least, not yet. On Thursday, the chip giant blew past Wall Street profits and revenue expectations for the last quarter of 2017. But the two flaws were only revealed in early January, and shareholders may need to brace for the potential fallout in coming quarters, says Reuters' Steven Nellis.
>> Intel repeated what it said on January 3rd, that there'll be no meaningful immediate financial impact from the Spector and Milton vulnerabilities. But it did say that it could have a future effect on its operations, its financial results, and its relationships with customers. And it also said that the added publicity that those two vulnerabilities drew to its products could cause hackers to look for more.
>> Investors focused on the bright side of the Intel story, the boom in its data center business. Bidding up the shares at one point, in Friday morning trading, by over 10%. But even that business may not be immune to Spector and meltdown.>> So Intel's data center business smashed all the company's records, they grew nearly twice what Wall Street was expecting.
There is a great customers for Intel. These are people like Apple, Microsoft, Google, etc, have big data centers, but it's also a big risk. Because when those customers buy a lot of chips, they tend to wanna come back and ask for a better price, which compresses margins. And you can bet that after these big security flaws that are causing a lot of pain to roll out the fixes for, big customers like that are gonna come back to Intel and ask for a discount in the future.
>> But so far, there's no indication Intel plans to put aside money for Spectre or Meltdown damage control. In 1995, the so-called Pentium FDIV bug cost the company $475,000,000 in replacements, and it's Kuber point chip problems in 2011 cost Intel $700,000,000. The latest flaws can be fixed with software, says Intel.
And that means little skin off Intel's profits.