Intel Corporation (NASDAQ: INTC ) is a global semiconductor company that designs, manufactures, and sells computer components such as CPUs and memory chips for businesses and consumers. They have been one of the largest semiconductor companies in theI believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (Chemical Engineering, University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My ...

Intel Corporation (INTC) reported relatively healthy fourth-quarter 2024 results, with adjusted earnings and revenues beating the respective Zacks Consensus Estimate. Despite solid traction from an accelerated ramp-up of artificial intelligence (AI) PCs, margins were significantly affected by initiatives to drive operational efficiency and agility, and accelerate profitable growth. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Intel has made significant strides in its cost-cutting p ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Core Insights - Intel reported a net loss of $126 million for Q4 2024, a significant decline from a profit of $2.67 billion in the same quarter last year, with revenue down 7% to $14.3 billion, although this was slightly better than analysts' expectations [2][3] - For the full year 2024, Intel's net loss reached $18.8 billion, compared to a profit of $1.7 billion in 2023, primarily due to restructuring charges and challenging market conditions [3] - The company's share price increased by 2% in after-hours trading following the earnings release, indicating a positive market reaction despite the losses [2] Company Performance - Intel's Client Computing Group, which includes PC chips, experienced a 9% revenue decline to $8 billion in Q4, but there was strong momentum in AI components for personal computers, with plans to ship over 100 million AI PCs by the end of 2025 [10] - Interim co-CEO Michelle Johnston Holthaus emphasized that the fourth quarter showed positive developments, with revenue, gross margin, and EPS exceeding guidance [6] - The company is exploring opportunities to leverage its existing chips and assets to compete against premium Nvidia GPUs, particularly in the AI sector [9] Leadership and Strategic Changes - Intel's CEO Pat Gelsinger was ousted due to a loss of confidence from the board regarding his turnaround plans, coinciding with a significant job cut plan affecting over 15,000 positions [4][5] - The company is currently in search of a permanent CEO following Gelsinger's departure [11] - Intel's market valuation has dropped significantly, with shares falling 60% last year, now valued at approximately $90 billion, a stark contrast to Nvidia's market position [5] Market Context - Intel faces intense competition from Asian semiconductor giants like TSMC and Samsung, as well as from Nvidia, which has emerged as a leader in AI chip production [4] - The company is optimistic about potential collaborations with the new U.S. presidential administration to promote domestic chipmaking [10]

Earnings Performance - Intel exceeded Q4 2024 earnings expectations with non-GAAP EPS of $0.13, surpassing the $0.1 estimate [1] - Revenue reached $14.3 billion, outperforming the $13.8 billion forecast [1] - Despite the outperformance, profitability challenges persist, with a 76% YoY decline in EPS and a 7% YoY revenue drop [3] Financial Metrics - Non-GAAP gross margin declined to 42.1% from 48.8% YoY, a 6.7 percentage point decrease [3] - Non-GAAP operating margin fell to 9.6% from 16.7% YoY, a 7.1 percentage point decline [3] - The company reported a net loss of $126 million in its Foundry Services due to impairment charges [8] Business Segments - Client Computing Group revenue decreased 9% YoY to $8 billion [6] - Data Center and AI segment revenue declined 3% YoY to $3.4 billion [6] - Network and Edge division revenue grew 10% YoY to $1.6 billion, driven by increased demand for networking solutions [6] Strategic Focus - Intel is executing its IDM 2.0 strategy to expand manufacturing capabilities and collaborate with external partners [4] - The company is advancing its product offerings in AI, edge computing, and cloud services while balancing cost control and R&D investments [5] - Facility expansions, particularly in Arizona, are critical for enhancing capacity and supply chain resilience [11] Dividend and Cash Flow - Intel maintained its quarterly dividend payout at $0.125 per share, prioritizing cash flow for future investments and operational stability [9] - The company is focusing on strategic investments, including the installation of more chip-making equipment, to support future growth [9] Outlook - Intel forecasts Q1 2025 revenue between $11.7 billion and $12.7 billion, with a non-GAAP EPS of $0.00 [10] - The company is advancing its manufacturing process nodes, particularly Intel 18A, and introducing new AI-enhanced chip technologies [11]

Q4 2024 Financial Performance - Revenue was $14.3 billion, a 7% year-over-year decrease[8] - Gross margin was 42.1% on a non-GAAP basis, a 6.7 percentage point decrease year-over-year[8] - EPS was $0.13 on a non-GAAP basis, a $0.41 decrease year-over-year[8] - GAAP gross margin was 39.2%, down 6.5 percentage points year-over-year[8] - GAAP EPS was $(0.03), down $0.66 year-over-year[8] Q1 2025 Outlook - Revenue is expected to be between $11.7 billion and $12.7 billion[23] - Gross margin is expected to be 36.0%[23] - EPS is expected to be $0.00[23] Business Segment Performance - CCG (Client Computing Group) revenue was $7.3 billion with an operating margin of 38.1%[11] - DCAI (Data Center and AI) revenue was $3.3 billion with an operating margin of 6.9%[12] - NEX (Network and Edge) revenue was $1.5 billion with an operating margin of 20.9%[13] - Intel Foundry Services (IFS) revenue was $4.4 billion with an operating margin of -50.2%[15] Strategic Initiatives - Intel 18A is nearing completion and ramping into volume production in 2H'25[6, 16] - The company received first funding from the U S CHIPS and Science Act[6] - The company is on track to ship >100 million AI PCs by year-end[14]

Core Insights - Intel reported revenue of $14.26 billion for the quarter ended December 2024, a decrease of 7.4% year-over-year, with EPS at $0.13 compared to $0.54 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $13.78 billion by 3.49%, while the EPS surpassed the consensus estimate of $0.12 by 8.33% [1] Financial Performance Metrics - Total Intel Products Group revenue was $13.03 billion, exceeding the average estimate of $12.54 billion [4] - Network and Edge revenue was $1.62 billion, surpassing the average estimate of $1.44 billion, reflecting a year-over-year increase of 10.3% [4] - Data Center and AI revenue was $3.39 billion, slightly above the average estimate of $3.35 billion, but down 15% compared to the previous year [4] - Client Computing Group revenue was $8.02 billion, exceeding the average estimate of $7.75 billion, but down 9.4% year-over-year [4] - Intel Foundry Services revenue reached $4.50 billion, slightly above the average estimate of $4.49 billion, representing a significant year-over-year increase of 1447.1% [4] - The stock has returned -1.5% over the past month, while the Zacks S&P 500 composite increased by 1.2% [3] - Intel currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Intel reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, but down from $0.54 per share a year ago, indicating a significant decline in profitability [1] Financial Performance - Intel's revenues for the quarter ended December 2024 were $14.26 billion, surpassing the Zacks Consensus Estimate by 3.49%, but down from $15.41 billion year-over-year [2] - Over the last four quarters, Intel has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Intel shares have decreased by approximately 1.5% since the beginning of the year, while the S&P 500 has gained 2.7% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $12.84 billion, and for the current fiscal year, it is $0.91 on revenues of $55.2 billion [7] - The estimate revisions trend for Intel is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Semiconductor - General industry is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8] - Amtech Systems, another company in the same industry, is expected to report a quarterly loss of $0.05 per share, reflecting a year-over-year decline of 25% [9]

Earnings Report and Market Reaction - Intel Corporation reported Q4 earnings with a muted reaction from investors as they evaluate the company's turnaround progress under new leadership [1] - Investors are also considering buyout and spin-off rumors, as well as an upcoming node launch that could impact the company's future performance [1] Analyst Background and Disclosure - The article is written by an analyst with a double degree in finance and computer science, who has passed all three levels of the CFA exam and currently works in fintech as a data engineer [1] - The analyst has a beneficial long position in Intel Corporation shares through stock ownership, options, or other derivatives [1] - The article expresses the analyst's own opinions and is not financial or investment advice [1] Seeking Alpha's Disclosure - Seeking Alpha's analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any institute or regulatory body [2] - The views or opinions expressed in the article may not reflect those of Seeking Alpha as a whole [2]

Group 1 - Intel reported a fourth-quarter loss of $100 million, or 3 cents per share, which was narrower than analysts' expectations [1] - Revenue for the fourth quarter fell 7% year-over-year to $14.3 billion, exceeding analyst consensus [1] - The foundry division generated revenue of $4.5 billion, surpassing estimates [1] Group 2 - For the first quarter, Intel projected revenue between $11.7 billion and $12.7 billion, which is below the analyst consensus of $12.9 billion [2] - The expected loss of 27 cents per share for the first quarter is wider than the anticipated 13 cents [2] - These results mark Intel's first since the resignation of former CEO Pat Gelsinger [2] Group 3 - Intel has been the subject of takeover rumors, with Citi analysts identifying Broadcom as a potential buyer [3] - There is speculation that Broadcom might consider selling Intel's foundry business [3] - Following the earnings release, Intel's shares rose about 2% in extended trading, although the stock has lost more than half its value over the past year [3]