Key TakeawaysIntel shares sank in after-hours trading following disappointing second-quarter revenue guidance.The chipmaker reported better-than-expected earnings and revenue for the first quarter.Revenue gains were driven by growth in its personal computing, data center, and AI segments. Foundry revenue fell 10% year-over-year. Intel (INTC) stock dropped more than 9% in after-hours trading despite topping revenue and earnings estimates for the first three months of the year after issuing weaker-than-antici ...

Revenue and Financial Performance - Q1 2024 revenue was $12.7 billion, up 9% year over year (YoY)[2] - Net revenue for Q1 2024 was $12.724 billion, an increase of 8.6% compared to $11.715 billion in Q1 2023[22] - Intel's total revenue for the three months ended March 30, 2024, was $17.077 billion, compared to $16.428 billion in the same period last year, representing a 4% increase[25] - Q2 2024 revenue is forecasted to be between $12.5 billion and $13.5 billion, with non-GAAP EPS expected at $0.10[2] Earnings and Profitability - Q1 2024 GAAP EPS was $(0.09), while non-GAAP EPS was $0.18[2] - Gross margin improved to $5.217 billion in Q1 2024 from $4.008 billion in Q1 2023, reflecting a 30.2% increase[22] - Operating loss decreased to $1.069 billion in Q1 2024 from $1.468 billion in Q1 2023, showing a 27.2% improvement[22] - Net loss attributable to Intel was $381 million in Q1 2024, significantly reduced from a net loss of $2.758 billion in Q1 2023[22] - Intel's operating income for the three months ended March 30, 2024, was $625 million, a significant improvement from an operating loss of $880 million in the same period last year[25] - Intel's total Intel Products operating income for the three months ended March 30, 2024, was $3.311 billion, compared to $1.133 billion in the same period last year, a 192% increase[25] - Intel's total all other operating loss for the three months ended March 30, 2024, was $212 million, compared to an operating income of $347 million in the same period last year[25] - GAAP gross margin for Q1 2024 was $5,217 million, compared to $4,008 million in Q1 2023, with a GAAP gross margin percentage of 41.0% and 34.2% respectively[32] - Non-GAAP gross margin for Q1 2024 was $5,739 million, compared to $4,494 million in Q1 2023, with a Non-GAAP gross margin percentage of 45.1% and 38.4% respectively[32] - GAAP operating loss for Q1 2024 was $(1,069) million, compared to $(1,468) million in Q1 2023, with a Non-GAAP operating income of $723 million and $(294) million respectively[32] - GAAP net loss attributable to Intel for Q1 2024 was $(381) million, compared to $(2,758) million in Q1 2023, with a Non-GAAP net income of $759 million and $(169) million respectively[32] - GAAP earnings per share (EPS) for Q1 2024 was $(0.09), compared to $(0.66) in Q1 2023, with a Non-GAAP EPS of $0.18 and $(0.04) respectively[33] - Q2 2024 outlook for GAAP gross margin percentage is 40.2%, with a Non-GAAP gross margin percentage outlook of 43.5%[35] - Q2 2024 outlook for GAAP EPS is $(0.05), with a Non-GAAP EPS outlook of $0.10[35] Product and Segment Performance - Intel Products revenue grew 17% YoY to $11.9 billion, driven by a 31% increase in Client Computing Group (CCG) revenue to $7.5 billion[7] - Intel Foundry revenue decreased 10% YoY to $4.4 billion[7] - Intel expects to exceed its prior forecast of 40 million AI PCs by the end of 2024, with over 5 million AI PCs shipped since the December 2023 launch of Intel Core™ Ultra processors[8] - Intel Gaudi 3 AI accelerator is projected to deliver 50% faster inference and 40% greater inference power efficiency compared to Nvidia H100 on leading generative AI models[8] Financial Outlook and Forecasts - Q2 2024 gross margin is expected to be 40.2% on a GAAP basis and 43.5% on a non-GAAP basis[13] - Intel Foundry announced an increased expected lifetime deal value for external customers of more than $15 billion[9] Cash Flow and Investments - Cash and cash equivalents decreased to $6.923 billion at the end of Q1 2024 from $7.079 billion at the end of Q4 2023[23] - Short-term investments decreased to $14.388 billion at the end of Q1 2024 from $17.955 billion at the end of Q4 2023[23] - Total assets increased slightly to $192.733 billion at the end of Q1 2024 from $191.572 billion at the end of Q4 2023[23] - Net cash used in operating activities was $1.223 billion in Q1 2024, compared to $1.785 billion in Q1 2023[24] - Additions to property, plant, and equipment were $5.970 billion in Q1 2024, down from $7.413 billion in Q1 2023[24] - Net cash provided by financing activities was $3.630 billion in Q1 2024, compared to $7.394 billion in Q1 2023[24] - Adjusted free cash flow for Q1 2024 was $(6,178) million, compared to $(8,764) million in Q1 2023[33] Sustainability and Environmental Impact - Intel used 99% renewable electricity in its factories worldwide and achieved net positive water in the United States, Costa Rica, Mexico, and India as of the end of 2023[10] Non-GAAP Financial Measures - Intel's non-GAAP financial measures exclude items such as acquisition-related adjustments, share-based compensation, restructuring and other charges, and gains/losses on equity investments to provide a clearer view of core operating performance[29][30] - Intel uses a long-term projected non-GAAP tax rate of 13% to calculate the income tax effects of non-GAAP adjustments, which is reviewed annually and may change due to factors such as global tax environment and geographic earnings mix[27] - Intel's adjusted free cash flow is a non-GAAP measure used to assess liquidity, capital resources, and quality of earnings, calculated by adjusting operating cash flow for capital expenditures and finance lease payments[30]

Will Intel share more details about its upcoming AI chip, the Gaudi 3?In today's video, I discuss recent updates impacting Intel (INTC 0.71%). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the after-market prices of April 24, 2024. The video was published on April 25, 2024. ...

Intel (NASDAQ:INTC) stock pulled back in recent weeks, but you may be confident that a rebound for Intel stock is just around the corner. Analysts walked back their forecasts leaving room for Intel to surprise the market. Promising guidance and updates on Intel’s move into AI chips could spark a post-earnings rally.Yet while INTC could bounce back in the near-term, it may be a different story when it comes to the quarters and years ahead. Intel may be a more formidable AI contender than the market initially ...

Intel Corporation (INTC) is scheduled to report first-quarter 2024 results on Apr 25 after the closing bell. In the to-be-reported quarter, the company is likely to have recorded higher revenues year over year from the Client Computing Group (CCG), backed by a strong emphasis on product innovation. Efforts to increase efficiency in semiconductor manufacturing and improve the supply chain are positive factors.Factors at PlayCCG is the company’s largest segment and accounts for the lion’s share of total reven ...

Intel Corporation (INTC) is scheduled to report first-quarter 2024 results on Apr 25 after the closing bell. In the to-be-reported quarter, the company is likely to have recorded lower revenues from the Datacenter and AI Group (DCAI) segment, owing to the challenging macroeconomic environment.However, the introduction of Xeon next-gen processors, code-named Sierra Forest, and advancements in AI-accelerated high-performance computing might have acted as a tailwind.Factors at PlayThe DCAI segment seeks to dev ...

Key PointsNAND flash memory is the dominant data storage technology when it comes to AI due to its fast speeds and increasing capacity as prices continue to come down.MRAM and PCM are challenging competitors that have superior technology, but infrastructure and costs prevent them from wide mainstream adoption.3D XPoint is a cautionary tale that illustrates how superior technology can still fail when up against a deeply entrenched incumbent leader.5 stocks we like better than NVIDIAArtificial intelligence (A ...

Earnings season kicks into a much higher gear this week, with a wide variety of companies on the reporting docket. The period has primarily been positive so far, with the big banks’ results not causing any spooks.Interestingly enough, several companies with artificial intelligence (AI) exposure are on the reporting docket, including Intel (INTC) , Vertiv (VRT) , and Western Digital (WDC) . But how do expectations stack up heading into the releases? Let’s take a closer look at each.VertivVertiv provides serv ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected b ...

The intelligence chief of Israel's Defense Forces has resigned citing failures linked to the Hamas terror attack carried out on Oct. 7, during which 1,200 people died in Israel and more than 200 were taken hostage."On Saturday, October 7, 2023, Hamas carried out a murderous surprise attack against the State of Israel, whose consequences are severe and painful. The intelligence division under my command did not live up to the task assigned to it," Major General Aharon Haliva said in a resignation letter supp ...