Intel CEO Pat Gelsinger, holding the “Gaudi 3” AI chip, speaks throughout the 54th Annual Assembly of The Semafor 2024 World Economic system Summit in Washington, DC, on April 17, 2024.
Mandel Ngan | AFP | Getty Photos
Intel reported first-quarter earnings on Thursday that beat Wall Avenue expectations for earnings per share, however got here up gentle in gross sales. Intel gave a weak forecast for the present quarter.
The inventory fell over 8% in prolonged buying and selling.
This is how Intel did versus LSEG consensus expectations for the quarter ending in March:
- Earnings per share: 18 cents adjusted vs. 14 cents anticipated
- Income: $12.72 billion vs. $12.78 billion anticipated
For the second quarter, Intel expects earnings of 10 cents per share on income of $13 billion on the midpoint. That forecast compares to analysts’ anticipated earnings per share of 25 cents, on $13.57 billion in gross sales.
Within the first quarter, Intel reported a web lack of $400 million, or 9 cents per share, versus a web lack of $2.8 billion, or 66 cents per share, final yr.
Income was $12.7 billion versus $11.7 billion a yr in the past, a 9% year-over-year enhance.
Intel’s report was the primary for the reason that firm revealed that it had restructured its monetary studies to make its chip manufacturing enterprise, referred to as Intel Foundry, a separate line merchandise with its personal prices and gross sales.
Intel’s Foundry enterprise reported $4.4 billion in income throughout the quarter, which was down 10% year-over-year, the corporate stated. The unit reported a $2.5 billion working loss throughout the March quarter. Intel stated final month that it had reported a $7 billion working loss in its foundry in 2023.
Intel’s largest enterprise stays the chips it makes for PCs and laptops, which is reported as Shopper Computing gross sales. These chip gross sales totalled $7.5 billion, up 31% on an annual foundation.
Intel additionally makes central processors for servers, in addition to different components and software program, that are reported in its Knowledge Heart and AI enterprise. That line noticed gross sales rise 5% to $3 billion, at the same time as Intel continues to battle for server {dollars} in opposition to AI chips made by corporations like Nvidia.
Earlier this month, Intel stated that it will launch a brand new AI processor for servers referred to as Gaudi 3, meant to compete in opposition to Nvidia’s widespread GPUs, though it will not ship till later this yr. Intel stated it anticipated greater than $500 million in gross sales from its Gaudi 3 chips within the second half of the yr.
Intel government are holding an earnings name at 5 p.m. ET to debate the outcomes.
