Intel CEO Pat Gelsinger, holding an Intel chip, took center stage during the 54th Annual Meeting of The Semafor 2024 World Economy Summit in Washington, DC on April 17, 2024, where he shared key insights on the company’s performance.
Despite beating Wall Street expectations for earnings per share, Intel’s sales figures fell short, resulting in a stock decline of 8% in extended trading following the earnings report.
Key highlights from the earnings report include Intel’s adjusted earnings per share of 18 cents versus the expected 14 cents, and revenue of $12.72 billion compared to the anticipated $12.78 billion.
Looking ahead to the second quarter, Intel provided a forecast of 10 cents per share on revenue of $13 billion at the midpoint, which is lower than analysts’ projections of 25 cents per share on $13.57 billion in sales.
Noteworthy figures from the first quarter earnings report include a net loss of $400 million, or 9 cents per share, an improvement from the net loss of $2.8 billion, or 66 cents per share, reported in the previous year. Revenue also saw a year-over-year increase, reaching $12.7 billion compared to $11.7 billion in the same period last year.
CEO Pat Gelsinger emphasized Intel’s long-term potential during an earnings call, highlighting the company’s role in advancing next-generation chip technologies. He reaffirmed Intel’s position as one of the few companies globally capable of driving innovation in this space.
Intel’s restructuring efforts were also evident in the financial reports, with the establishment of Intel Foundry as a separate line item. The Foundry business reported $4.4 billion in revenue for the quarter, albeit experiencing a 10% year-over-year decline and a $2.5 billion operating loss.
Intel’s core businesses, including Client Computing sales and Data Center and AI operations, showed promising results. Client Computing sales, which include chips for PCs and laptops, totaled $7.5 billion, marking a significant 31% increase from the previous year. On the other hand, Data Center and AI sales rose by 5% to reach $3 billion, despite facing competitive pressures in the server market.
Intel’s strategic move to unveil a new AI processor for servers, named Gaudi 3, signifies the company’s commitment to challenging Nvidia’s dominance in the GPU segment. With an expected sales target of over $500 million in the latter half of the year, Intel aims to capture a larger share of the AI chip market.
