Intel stock is heading for its worst day in over three years after the chipmaker's earningsThe tech-heavy Nasdaq is the only major index swimming in red ink this morning, and Intel Corp (NASDAQ:INTC) is to blame. The semiconductor stock is down 11.7% to trade at $43.85 at last check, on track for its worst single-session drop in over three years. Intel reported fourth-quarter earnings and revenue that topped estimates, but a first-quarter revenue forecast that came well below expectations is driving the plu ...

In today's video, I discuss recent news affecting Intel (INTC 0.94%) and Nvidia (NVDA 0.42%). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of Jan. 25, 2024. The video was published on Jan. 25, 2024. ...

As Intel Corp.’s stock flirted Friday with the possibility of seeing its biggest one-day drop in more than two years, analysts had some harsh words for the chip maker.“How many times can you push the reset button?” Bernstein’s Stacy Rasgon asked in a note to clients. While he thought many investors were bracing for the company to miss on its first-quarter forecast, the outlook came in “extremely weak and clearly worse than feared.” Intel INTC, +0.94% expects $12.7 billion in revenue at the midpoint, while a ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Intel Corporation (INTC) reported better-than-expected fourth-quarter 2023 results, largely due to strong operating leverage, expense discipline and significant traction from its IDM 2.0 (integrated device manufacturing) strategy.Net IncomeThe company reported GAAP earnings of $2,669 million or 63 cents per share against a loss of $664 million or a loss of 16 cents per share in the year-ago quarter. The significant improvement was primarily attributable to higher revenues and lower operating expenses.Non-GA ...

Key TakeawaysIntel shares were down more than 10% in pre-market trading after the chipmaker issued a soft first quarter outlook, citing weakness in several of its subsidiaries and the company’s programmable chip unit.Intel CEO Pat Gelsinger anticipates the PC market to normalize throughout 2024 after a two-year slump.Intel shares look susceptible to breaking down from a head and shoulders chart pattern. Intel Corporation Source: TradingView.com.Despite delivering better-than-expected fourth quarter resul ...

About this content About Jeremy Cutler Jeremy has worked extensively in the world of financial journalism as a reporter at ICV News, deputy editor at S&P Marketscope and as a senior reporter for Thomson Financial’s Marketeye.  A qualified accountant, former finance director and with a degree in Economics, Jeremy is well placed to analyse and explain the ups and downs of UK, European and US stockmarkets in Proactive’s daily market report Read more About the publisher Proactive financial news and online br ...

Financial Data and Key Metrics Changes - Q4 2023 revenue was $15.4 billion, up 9% sequentially and 10% year-over-year, exceeding guidance by $300 million [28] - Gross margin was 48.8%, 230 basis points better than guidance, driven by favorable product mix and improved unit costs [28] - EPS for Q4 was $0.54, beating guidance by $0.10 due to improved gross margins and disciplined operating expense management [28] Business Line Data and Key Metrics Changes - Client Computing Group (CCG) revenue was $8.8 billion, up 12% sequentially and 33% year-over-year, driven by strength in gaming and commercial segments [29] - Data Center and AI Group (DCAI) revenue was $4 billion, up 4% sequentially, with double-digit growth in the server business [30] - Network and Edge Group (NEX) revenue was $1.5 billion, up 1% sequentially, with an operating loss of $12 million [31] - Intel Foundry Services (IFS) revenue was $291 million, down modestly sequentially but up 63% year-over-year [31] - Mobileye revenue reached a record $637 million, up 20% sequentially and 13% year-over-year, with a record operating profit of $242 million [31] Market Data and Key Metrics Changes - The 2023 PC consumption total addressable market (TAM) was approximately 270 million units, consistent with expectations, with a low single-digit growth forecast for 2024 [22][34] - The server business saw solid sequential growth, with over 2.5 million units of the 4th Gen Xeon shipped, driven by AI demand [18] Company Strategy and Development Direction - The company is focused on its IDM 2.0 transformation, aiming to regain process leadership and expand foundry capabilities [5][10] - Plans to become the second largest external foundry by 2030, leveraging AI as a significant growth driver [10][16] - The launch of new products like Sierra Forest and Granite Rapids is expected to enhance market competitiveness [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sequential and year-over-year growth in revenue and EPS for each quarter of fiscal year 2024 [6][34] - The company anticipates temporary headwinds from Mobileye and PSG but expects overall core business performance to remain strong [6][34] - Management highlighted the importance of AI workloads as a key driver for future semiconductor market growth [16] Other Important Information - The company has made significant progress in reducing structural cost gaps and achieving $3 billion in cost savings for fiscal year 2023 [28][32] - A new internal foundry model has been implemented to enhance transparency and accountability, expected to drive further efficiencies [37][39] Q&A Session Summary Question: Near-term demand picture and seasonality - Management acknowledged the low end of seasonality for core businesses but expressed confidence in improving performance throughout the year [42][44] Question: Confidence in manufacturing nodes and leadership positioning - Management reassured that progress on 18A is strong, with external validation of process technology competitiveness [45][47] Question: Gross margin outlook and inventory impacts - Management indicated that Q4 gross margin performance was aided by better sell-through of previously reserved products, with expectations for a 60% fall-through in the long term [50][52] Question: Data center decline and FPGA weakness - Management noted that the data center decline is seasonal, with strength expected from server customers and a favorable outlook for the year [60][62] Question: Long-term mix between Sierra Forest and Granite Rapids - Management expects a healthy split between Sierra Forest and Granite Rapids, with a focus on total cost of ownership for cloud customers [64][66] Question: Client market performance and revenue confidence - Management anticipates a solid year for the client business, supported by a stable market share and improved product lines [70]

Intel Corp.’s disappointing forecast for the first quarter includes another anticipated double-digit decline in the company’s data-center business, as the chip maker has yet to capitalize on its AI opportunity.Since its third-quarter earnings, Intel’s stock INTC, +0.94% has surged about 50%, in part due to the potential of providing chips for artificial intelligence. One analyst said in November that Intel represented a potential “under-the-radar AI opportunity.” But on Thursday, its shares tumbled about 11 ...

After Intel's (INTC) first quarter of 2024 outlook drew investors' attention away from its fourth-quarter earnings beat, sending the company's stock down more than 10% in after-hours trading, corporate leaders discussed the subpar guidance, Intel's growing foundry business, remaining competitive in the artificial intelligence (AI) era, and AI personal computer (PC) potential. Weak 2024 Guidance Is 'Temporary' Intel sees its weak first quarter of 2024 outlook as "temporary," expecting "sequential and year ...