Intel CEO Pat Gelsinger speaks on CNBC’s Squawk Box during the WEF Annual Meeting in Davos, Switzerland on January 16, 2024.
Adam Garisi | CNBC
intel Stocks fell in extended trading Thursday as chipmakers weighed in. announced the outlook First-quarter 2024 results were below analysts’ expectations, even though the latest quarter’s results beat Wall Street expectations.
Intel’s earnings and LSEG (formerly Refinitiv) consensus estimates for the quarter ended December are as follows:
- Earnings per share: Adjusted 54 cents, expected 45 cents.
- revenue: $15.4 billion vs. $15.15 billion expected
For the first quarter of fiscal 2024, Intel expects earnings of 13 cents per share on revenue of $12.2 billion to $13.2 billion, while LSEG expects earnings of 13 cents per share on revenue of $14.15 billion. is expected to be 33 cents.
Intel had a net loss of $700 million, or 16 cents per share, compared to net income of $2.7 billion, or 63 cents per share. last year.
Intel reported a 10% increase in fourth-quarter revenue from $14.04 billion in the year-ago period, marking the company’s seventh straight quarter of revenue declines. Intel’s gross margin was 40%, down 2.6 points for the year.
Intel’s stock price has risen more than 74% over the past year. According to Gartner, the company is the largest semiconductor manufacturer by revenue. market research companyEven if the market capitalization is less than that Nvidia and AMD On Wall Street.
Big-spending cloud providers and big tech companies are paying attention to the AI boom, which explains Nvidia’s recent outperformance. Once upon a time, the most important part of a server was the central processor made by Intel. AI servers can now connect up to eight Nvidia or AMD graphics processing units (GPUs) to one or two Intel CPUs.
Intel also remains focused on the five-year plan implemented by CEO Pat Gelsinger, who took over the chipmaker in 2021. Intel wants to catch up. Taiwan semiconductor manufacturing company in that it can provide manufacturing services to other companies while improving its own branded chips.
“This quarter capped a year of significant progress in Intel’s transformation,” Gelsinger said in a statement.
Intel has been cutting costs by cutting jobs and offloading smaller parts of its business. The company announced last year that it would spin off its programmable chip unit after making its self-driving car subsidiary a subsidiary. mobile eye Intel CFO David Zinsner said in a statement that Intel cut costs by $3 billion last year.
Intel’s largest division is its client computing group, which includes laptop and PC processor chips. The PC industry as a whole has been in the doldrums for two years, but has recently begun to show signs of growth again. Intel reported that fourth quarter revenue was $8.8 billion, an increase of 33%.
Gelsinger said Intel is seeing demand for PC chips “normalize” and sales are strong in the gaming and commercial sectors. He added that Intel expects the overall PC market to expand this year.
Revenue from Data Center and AI, Intel’s second-largest division, fell 10% to $4 billion. This unit contains the server’s CPU and GPU. Intel’s Network & Edge division, which sells components for carriers and networking, reported sales of $1.5 billion, down 24% from a year ago.
Intel Foundry Services, which makes chips for other companies, is still in its infancy, with sales of $291 million and growth of 63% annually.
Intel announced that it paid a dividend of $3.1 billion in 2023.