Intel’s First Quarter 2024 Outlook Falls Short of Analyst Estimates, Stock Dips

Intel Corporation, a leading global manufacturer of semiconductors, reported its financial results for the fourth quarter of 2023 and provided an outlook for the first quarter of 2024. The company’s earnings and revenue for the latest quarter surpassed Wall Street estimates, but the outlook for the upcoming quarter fell short, causing Intel shares to drop in extended trading.

Intel reported earnings per share of 54 cents adjusted, compared to the consensus estimate of 45 cents. The company’s revenue for the quarter was $15.4 billion, which was higher than the expected $15.15 billion. However, Intel’s outlook for the first quarter of 2024 was disappointing, with earnings per share projected at 13 cents and revenue expected to be between $12.2 billion and $13.2 billion. Analysts had anticipated earnings per share of 33 cents and revenue of $14.15 billion for the first quarter.

Pat Gelsinger, Intel’s CEO, attributed the weak outlook to the performance of the company’s subsidiaries, including Mobileye and its programmable chip unit, as well as revenue decreases from other businesses Intel has spun off or sold. Gelsinger stated that the core businesses, specifically the PC and server chip markets, were healthy and that Intel did not anticipate any market share loss.

Intel’s net income for the fourth quarter was $2.7 billion, or 63 cents per share, compared to a net loss of $0.7 billion, or 16 cents per share, in the same quarter the previous year. The company’s gross margin was 40%, down 2.6 percentage points annually. Intel’s shares have risen over 74% in the past year, making it the largest semiconductor maker by revenue, according to Gartner.

The data center market, which has seen significant growth due to the AI boom, has led to increased demand for graphics processing units (GPUs) from companies like Nvidia and AMD. Intel’s CFO, David Zinsner, acknowledged the shift in wallet share from CPUs to accelerators in the data center market. Intel is focusing on a five-year plan to improve its manufacturing capabilities and catch up to Taiwan Semiconductor Manufacturing Company (TSMC) in the foundry services market.

Intel’s Foundry Services business, which makes chips for other companies, generated $291 million in revenue, a 63% annual increase. The company has been cutting costs through workforce reductions and offloading small business lines. In the past year, Intel announced plans to spin off its programmable chip unit and turn its self-driving car subsidiary, Mobileye, into an independent company. Zinsner stated that Intel had cut $3 billion in costs last year and had spun off or sold five different business lines.

Intel’s largest division, the Client Computing group, which includes laptop and PC processor chips, reported $8.8 billion in fourth-quarter sales, up 33%. The overall PC industry has been in a slump for two years but recently started showing signs of growth again. Gelsinger stated that demand for PC chips had “normalized,” and sales were strong in the gaming and commercial sectors. He added that Intel expects the total PC market to expand this year.

Intel’s second largest division, the Data Center and AI group, which includes server CPUs and GPUs, reported a 10% decline in sales to $4 billion. The Network and Edge department, which sells parts for carriers and networking, reported $1.5 billion in sales, down 24% from the previous year. Zinsner expects Intel’s Data Center business to decline “double-digit” percentages sequentially in the first quarter versus the fourth quarter.

Intel paid $3.1 billion in dividends in 2023. The company’s stock performance and outlook for the first quarter of 2024 have caused Intel shares to dip in extended trading. Intel’s transformation plan, implemented by Gelsinger, aims to improve the company’s manufacturing capabilities and catch up to TSMC in the foundry services market. Intel’s focus on cost-cutting measures and the spin-off of certain business lines is expected to continue in the coming years.

In conclusion, Intel’s financial results for the fourth quarter of 2023 were strong, with earnings and revenue surpassing Wall Street estimates. However, the company’s outlook for the first quarter of 2024 fell short, causing Intel shares to dip in extended trading. Intel’s focus on improving its manufacturing capabilities, cost-cutting measures, and the spin-off of certain business lines is expected to continue in the coming years as the company navigates the competitive semiconductor market.

Intel’s transformation plan, led by CEO Pat Gelsinger, aims to make the company more competitive in the foundry services market and improve its own branded chips. The company’s focus on cost-cutting measures, including workforce reductions and the spin-off of certain business lines, is expected to continue in the coming years. Intel’s strong performance in the PC market, particularly in the gaming and commercial sectors, and the expansion of the total PC market are positive signs for the company’s future growth.

Intel’s weak outlook for the first quarter of 2024, despite strong financial results for the fourth quarter, highlights the challenges the company faces in the competitive semiconductor market. The shift in wallet share from CPUs to accelerators in the data center market and Intel’s focus on improving its manufacturing capabilities are key areas to watch as the company continues its transformation.

Intel’s financial results for the fourth quarter of 2023 were a mixed bag, with strong earnings and revenue surpassing Wall Street estimates, but a weak outlook for the first quarter of 2024 causing Intel shares to dip in extended trading. The company’s focus on improving its manufacturing capabilities, cost-cutting measures, and the spin-off of certain business lines is expected to continue in the coming years as Intel navigates the competitive semiconductor market.

The data center market, which has seen significant growth due to the AI boom, has led to increased demand for graphics processing units (GPUs) from companies like Nvidia and AMD. Intel’s CFO, David Zinsner, acknowledged the shift in wallet share from CPUs to accelerators in the data center market. Intel is focusing on a five-year plan to improve its manufacturing capabilities and catch up to Taiwan Semiconductor Manufacturing Company (TSMC) in the foundry services market.

Intel’s Foundry Services business, which makes chips for other companies, generated $291 million in revenue, a 63% annual increase. The company has been cutting costs through workforce reductions and offloading small business lines. In the past year, Intel announced plans to spin off its programmable chip unit and turn its self-driving car subsidiary, Mobileye, into an independent company. Zinsner stated that Intel had cut $3 billion in costs last year and had spun off or sold five different business lines.

Intel’s largest division, the Client Computing group, which includes laptop and PC processor chips, reported $8.8 billion in fourth-quarter sales, up 33%. The overall PC industry has been in a slump for two years but recently started showing signs of growth again. Gelsinger stated that demand for PC chips had “normalized,” and sales were strong in the gaming and commercial sectors. He added that Intel expects the total PC market to expand this year.

Intel’s second largest division, the Data Center and AI group, which includes server CPUs and GPUs, reported a 10% decline in sales to $4 billion. The Network and Edge department, which sells parts for carriers and networking, reported $1.5 billion in sales, down 24% from the previous year. Zinsner expects Intel’s Data Center business to decline “double-digit” percentages sequentially in the first quarter versus the fourth quarter.

Intel paid $3.1 billion in dividends in 2023. The company’s stock performance and outlook for the first quarter of 2024 have caused Intel shares to dip in extended trading. Intel’s transformation plan, led by CEO Pat Gelsinger, aims to make the company more competitive in the foundry services market and improve its own branded chips. The company’s focus on cost-cutting measures, including workforce reductions and the spin-off of certain business lines, is expected to continue in the coming years.

In conclusion, Intel’s financial results for the fourth quarter of 2023 were strong, with earnings and revenue surpassing Wall Street estimates. However, the company’s outlook for the first quarter of 2024 fell short, causing Intel shares to dip in extended trading. Intel’s focus on improving its manufacturing capabilities, cost-cutting measures, and the spin-off of certain business lines is expected to continue in the coming years as Intel navigates the competitive semiconductor market.

The data center market, which has seen significant growth due to the AI boom, has led to increased demand for graphics processing units (GPUs) from companies like Nvidia and AMD. Intel’s CFO, David Zinsner, acknowledged the shift in wallet share from CPUs to accelerators in the data center market. Intel is focusing on a five-year plan to improve its manufacturing capabilities and catch up to Taiwan Semiconductor Manufacturing Company (TSMC) in the foundry services market.

Intel’s Foundry Services business, which makes chips for other companies, generated $291 million in revenue, a 63% annual increase. The company has been cutting costs through workforce reductions and offloading small business lines. In the past year, Intel announced plans to spin off its programmable chip unit and turn its self-driving car subsidiary, Mobileye, into an independent company. Zinsner stated that Intel had cut $3 billion in costs last year and had spun off or sold five different business lines.

Intel’s largest division, the Client Computing group, which includes laptop and PC processor chips, reported $8.8 billion in fourth-quarter sales, up 33%. The overall PC industry has been in a slump for two years but recently started showing signs of growth again. Gelsinger stated that demand for PC chips had “normalized,” and sales were strong in the gaming and commercial sectors. He added that Intel expects the total PC market to expand this year.

Intel’s second largest division, the Data Center and AI group, which includes server CPUs and GPUs, reported a 10% decline in sales to $4 billion. The Network and Edge department, which sells parts for carriers and networking, reported $1.5 billion in sales, down 24% from the previous year. Zinsner expects Intel’s Data Center business to decline “double-digit” percentages sequentially in the first quarter versus the fourth quarter.

Intel paid $3.1 billion in dividends in 2023. The company’s stock performance and outlook for the first quarter of 2024 have caused Intel shares to dip in extended trading. Intel’s transformation plan, led by CEO Pat Gelsinger, aims to make the company more competitive in the foundry services market and improve its own branded chips. The company’s focus on cost-cutting measures, including workforce reductions and the spin-off of certain business lines, is expected to continue in the coming years.

Intel’s financial results for the fourth quarter of 2023 were strong, with earnings and revenue surpassing Wall Street estimates. However, the company’s outlook for the first quarter of 2024 fell short, causing Intel shares to dip in extended trading. Intel’s focus on improving its manufacturing capabilities, cost-cutting measures, and the spin-off of certain business lines is expected to continue in the coming years as Intel navigates the competitive semiconductor market.

The data center market, which has seen significant growth due to the AI boom, has led to increased demand for graphics processing units (GPUs) from companies like Nvidia and AMD. Intel’s CFO, David Zinsner, acknowledged the shift in wallet share from CPUs to accelerators in the data center market. Intel is focusing on a five-year plan to improve its manufacturing capabilities and catch up to Taiwan Semiconductor Manufacturing Company (TSMC) in the foundry services market.

Intel’s Foundry Services business, which makes chips for other companies, generated $291 million in revenue, a 63% annual increase. The company has been cutting costs through workforce reductions and offloading small business lines. In the past year, Intel announced plans to spin off its programmable chip unit and turn its self-driving car subsidiary, Mobileye, into an independent company. Zinsner stated that Intel had cut $3 billion in costs last year and had spun off or sold five different business lines.

Intel’s largest division, the Client Computing group, which includes laptop and PC processor chips, reported $8.8 billion in fourth-quarter sales, up 33%. The overall PC industry has been in a slump for two years but recently started showing signs of growth again. Gelsinger stated that demand for PC chips had “normalized,” and sales were strong in the gaming and commercial sectors. He added that Intel expects the total PC market to expand this year.

Intel’s second largest division, the Data Center and AI group, which includes server CPUs and GPUs, reported a 10% decline in sales to $4 billion. The Network and Edge department, which sells parts for carriers and networking, reported $1.5 billion in sales, down 24% from the previous year. Zinsner expects Intel’s Data Center business to decline “double-digit” percentages sequentially in the first quarter versus the fourth quarter.

Intel paid $3.1 billion in dividends in 2023. The company’s stock performance and outlook for the first quarter of 2024 have caused Intel shares to dip in extended trading. Intel’s transformation plan, led by CEO Pat Gelsinger, aims to make the company more competitive in the foundry services market and improve its own branded chips. The company’s focus on cost-cutting measures, including workforce reductions and the spin-off of certain business lines, is expected to continue in the coming years.

Intel’s financial results for the fourth quarter of 2023 were strong, with earnings and revenue surpassing Wall Street estimates. However, the company’s outlook for the first quarter of 2024 fell short, causing Intel shares to dip in extended trading. Intel’s focus on improving its manufacturing capabilities, cost-cutting measures, and the spin-off of certain business lines is expected to continue in the coming years as Intel navigates the competitive semiconductor market.

The data center market, which has seen significant growth due to the AI boom, has led to increased demand for graphics processing units (GPUs) from companies like Nvidia and AMD. Intel’s CFO, David Zinsner, acknowledged the shift in wallet share from CPUs to accelerators in the data center market. Intel is focusing on a five-year plan to improve its manufacturing capabilities and catch up to Taiwan Semiconductor Manufacturing Company (TSMC) in the foundry services market.

Intel’s Foundry Services business, which makes chips for other companies, generated $291 million in revenue, a 63% annual increase. The company has been cutting costs through workforce reductions and offloading small business lines. In the past year, Intel announced plans to spin off its programmable chip unit and turn its self-driving car subsidiary, Mobileye, into an independent company. Zinsner stated that Intel had cut $3 billion in costs last year and had spun off or sold five different business lines.

Intel’s largest division, the Client Computing group, which includes laptop and PC processor chips, reported $8.8 billion in fourth-quarter sales, up 33%. The overall PC industry has been in a slump for two years but recently started showing signs of growth again. Gelsinger stated that demand for PC chips had “normalized,” and sales were strong in the gaming and commercial sectors. He added that Intel expects the total PC market to expand this year.

Intel’s second largest division, the Data Center and AI group, which includes server CPUs and GPUs, reported a 10% decline in sales to $4 billion. The Network and Edge department, which sells parts for carriers and networking, reported $1.5 billion in sales, down 24% from the previous year. Zinsner expects Intel’s Data Center business to decline “double-digit” percentages sequentially in the first quarter versus the fourth quarter.

Intel paid $3.1 billion in dividends in 2023. The company’s stock performance and outlook for the first quarter of 2024 have caused Intel shares to dip in extended trading. Intel’s transformation plan, led by CEO Pat Gelsinger, aims to make the company more competitive in the foundry services market and improve its own branded chips. The company’s focus on cost-cutting measures, including workforce reductions and the spin-off of certain business lines, is expected to continue in the coming years.

Intel’s financial results for the fourth quarter of 2023 were strong, with earnings and revenue surpassing Wall Street estimates. However, the company’s outlook for the first quarter of 2024 fell short, causing Intel shares to dip in extended trading. Intel’