Financial Data and Key Metrics - Q3 revenue was $13.3 billion, up 4% sequentially, and in the upper half of the guidance range [43] - Non-GAAP gross margin was 18%, impacted by $3 billion in non-cash impairment and accelerated depreciation charges, primarily for Intel 7 [45] - Q3 operating cash flow was $4.1 billion, up $1.8 billion sequentially, driven by better working capital [48] - Adjusted free cash flow was negative $2.7 billion, with growth CapEx of $6.5 billion in the quarter [49] - The company expects Q4 revenue to be between $13.3 billion and $14.3 billion, with a non-GAAP gross margin of approximately 39.5% and EPS of $0.12 [59] Business Line Data and Key Metrics - Intel Products revenue was $12.2 billion, up 3% sequentially, with CCG revenue down 1% and DCAI revenue up 10% [50] - Intel Foundry revenue was $4.4 billion, up slightly sequentially, with an operating loss of $5.8 billion driven by $3 billion in impairment charges [52] - Mobileye revenue was $485 million, down 8% year-over-year, primarily due to a more than 50% reduction in shipments to China [54] - Altera revenue was $412 million, up 14% sequentially, with operating margins increasing by 900 basis points [55] Market Data and Key Metrics - The company is focusing on the AI PC category, with the launch of the Intel Core Ultra 200V series processors and plans to ship over 100 million AI PCs by the end of 2025 [20][21] - In DCAI, the company launched the Xeon 6 product, which doubles the performance of the prior generation, and the Gaudi 3 AI accelerator, which delivers twice the networking bandwidth and 1.5x the memory bandwidth of its predecessor [25][26] - The company is refocusing its NEX portfolio on networking and telco, moving the Edge business into CCG to leverage core client business investments [29][30] Company Strategy and Industry Competition - The company is executing a cost reduction plan, including a greater than 15% workforce reduction, a 20% reduction in capital expenditures, and portfolio simplification to unlock efficiencies [9][10][11] - Intel is focusing on its x86 franchise, with plans to drive new levels of customization, compatibility, and scalability to meet next-generation computing demands [16][17] - The company is creating an x86 Ecosystem Advisory Group with industry leaders to shape the future of x86 architecture [18][19] - Intel Foundry is being established as an independent subsidiary to optimize capital structure and attract external customers [35] Management Commentary on Operating Environment and Future Outlook - The company is focused on improving profitability, managing costs, and strengthening the balance sheet to create long-term shareholder value [40][41] - Management expects adjusted free cash flow to be positive in 2025, with OpEx of $17.5 billion and gross/net CapEx of $20-23 billion/$12-14 billion, respectively [61] - The company is optimistic about the growing market adoption of AI PCs and its strong product positioning, with gross margin expansion expected to improve significantly in 2026 [62] Other Important Information - The company is finalizing a multiyear, multibillion-dollar commitment with AWS for custom Xeon 6 and AI fabric chips [33] - Intel received an additional $3 billion in direct funding under the Secure Enclave program to produce leading-edge semiconductors for the US government [34] - The company is in discussions with potential investors for Altera, with plans to conclude by early 2025 [38] Q&A Session Summary Question: Metrics for 18A transition and external customer growth [65] - The company will provide qualitative metrics on progress, including LDV updates and customer additions, with financial impacts expected in 2026 [66] Question: Gross margin drivers and outlook [67] - Q3 gross margin upside was due to better sell-through of reserved inventory, while Q4 will see pressure from 18A start-up costs [68] - Lunar Lake's memory-in-package design will weigh on gross margins in 2025, with improvements expected in 2026 as Panther Lake ramps [68] Question: Defect density and yield for 18A [71] - Defect density for 18A is sub-0.4, which is healthy for the current phase of development, with high-volume production yields expected to improve in the second half of 2025 [71] Question: Panther Lake and Nova Lake outsourcing [72] - The majority of Panther Lake and Nova Lake wafers will be produced internally, with some flexibility for external sourcing [73] Question: Capacity flexibility and 18A success [74] - The company has optionality in its product portfolio and supply chain, with flexibility to scale up capacity if market conditions require [75] Question: Q1 seasonality [76] - The company expects Q1 seasonality to be in the 8-10% range, with more clarity provided in the next earnings call [76] Question: 2025 revenue and gross margin outlook [79] - The company is managing the business for 3-5% annual revenue growth, with gross margins expected to face headwinds in the second half of 2025 due to Lunar Lake [80] Question: Intel's AI strategy in data centers [81] - The company sees a strong role for CPUs in enterprise AI, with a strategy focused on CPU plus accelerator solutions and the x86 Ecosystem Advisory Group [81] Question: External Foundry revenue and success metrics [84] - External Foundry revenue will be modest in the near term, with the goal of reaching $15 billion by the end of the decade [85] Question: Server market share and roadmap [87] - The company aims to stabilize and grow its server market share, with a strong roadmap including Granite Rapids, Clearwater Forest, and Diamond Rapids [88] Question: Packaging business and customer interest [91] - The company sees strong interest in its advanced packaging technologies, with profitability achieved in Q3 and a growing pipeline of design wins [92] Question: Lunar Lake memory packaging impact [93] - Lunar Lake's memory-in-package design is having a significant impact on gross margins, but this is a one-off issue that will not affect future products [94][95] Question: CapEx and OpEx flexibility [97] - The company has flexibility in CapEx, particularly in capacity investments, while OpEx is relatively firm at $17.5 billion [98] Question: Foundry subsidiary model and strategic options [100] - The subsidiary model provides operational integrity and funding flexibility, with the majority of volumes still coming from Intel Products [100] Question: Product focus and x86 prioritization [103] - The company is simplifying its product portfolio, reducing SKUs, and integrating graphics capabilities to focus on x86 leadership [103][104] Question: IDM 2.0 model and Foundry relationship [105] - The subsidiary model supports the IDM 2.0 strategy, with a focus on both internal and external Foundry success [106]

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Intel Corporation (NASDAQ: INTC ) is soaring after hours on Thursday after reporting third quarter earnings that were better than expected (though that's not saying much). It showed progress on a restructuring plan that the company hopes can turnTo follow me click the "Follow" button! (Easy right?) Hi there, thanks for coming to my profile page! My name is Kumquat Research (but you can call me Jeremy) and I've been writing for Seeking Alpha on and off for going on ten years now, beginning with my inaugural ...

For the quarter ended September 2024, Intel (INTC) reported revenue of $13.28 billion, down 6.2% over the same period last year. EPS came in at -$0.46, compared to $0.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $13.01 billion, representing a surprise of +2.10%. The company delivered an EPS surprise of -1433.33%, with the consensus EPS estimate being -$0.03.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Intel Corporation (NASDAQ: INTC ) has been a tempting buy of late, following absolute carnage in the stock, but also with news of contracts and deals benefitting the company. However, it comes down to performance, and the incredibly anticipatedLAST CHANCE. Join now for outsized returnsSignificantly grow your wealth by embracing a blended trading and investing approach at our one-stop shop. Start winning now!Our prices go up November 5th, but right now we have a big sale on the current price. Join NOW and yo ...

Intel (INTC) came out with a quarterly loss of $0.46 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1,433.33%. A quarter ago, it was expected that this world's largest chipmaker would post earnings of $0.10 per share when it actually produced earnings of $0.02, delivering a surprise of -80%.Over the last four quarters, the co ...

Intel (INTC) reported third-quarter revenue that topped analysts' expectations, sending shares higher after the bell Thursday despite widening losses. The chipmaker's third-quarter revenue fell 6% year-over-year to $13.3 billion, above the $13.03 billion consensus estimate of analysts compiled by Visible Alpha. Intel posted a wider-than-expected loss of $16.6 billion, after reporting a $1.61 billion loss in the second quarter as the chipmaker works to cut costs. A year ago, the chipmaker had reported a pro ...

Revenue and Financial Performance - Q3 2024 revenue was $13.3 billion, down 6% compared to Q3 2023[1][4] - Net revenue for Q3 2024 decreased to $13.284 billion from $14.158 billion in Q3 2023, a decline of 6.2%[20] - Intel's total net revenue for Q3 2024 was $13.284 billion, a decrease from $14.158 billion in Q3 2023[24] - Q4 2024 revenue guidance is $13.3 billion to $14.3 billion, with non-GAAP EPS expected to be $0.12[1][10] Earnings and Losses - Q3 2024 GAAP EPS was $(3.88), impacted by $15.9 billion in impairment charges and $2.8 billion in restructuring charges[1][5] - Operating loss for Q3 2024 widened to $9.057 billion from $8 million in Q3 2023[20] - Net loss attributable to Intel for Q3 2024 was $16.639 billion, compared to a net income of $297 million in Q3 2023[20] - Earnings per share (diluted) for Q3 2024 was a loss of $3.88, compared to a gain of $0.07 in Q3 2023[20] - GAAP operating loss for Q3 2024 was $9.057 billion, compared to a loss of $8 million in Q3 2023[31] - Non-GAAP operating loss for Q3 2024 was $2.369 billion, versus a profit of $1.924 billion in Q3 2023[31] - GAAP net loss attributable to Intel for Q3 2024 was $16.639 billion, compared to a profit of $297 million in Q3 2023[31] - Non-GAAP net loss attributable to Intel for Q3 2024 was $1.976 billion, versus a profit of $1.739 billion in Q3 2023[31] Gross Margin - Gross margin for Q3 2024 dropped significantly to $1.997 billion compared to $6.018 billion in Q3 2023, a decrease of 66.8%[20] - GAAP gross margin for Q3 2024 was $1.997 billion, a significant decrease from $6.018 billion in Q3 2023[31] - Non-GAAP gross margin percentage for Q3 2024 was 18.0%, down from 45.8% in Q3 2023[31] - Non-GAAP gross margin percentage for Q4 2024 is expected to be 39.5%[34] Business Segments - Client Computing Group (CCG) revenue was $7.3 billion, down 7% year-over-year[7] - Data Center and AI (DCAI) revenue was $3.3 billion, up 9% year-over-year[7] - Client Computing Group revenue for Q3 2024 was $7.330 billion, down from $7.867 billion in Q3 2023[24] - Data Center and AI revenue increased to $3.349 billion in Q3 2024 from $3.076 billion in Q3 2023[24] - Intel Foundry revenue decreased to $4.352 billion in Q3 2024 from $4.732 billion in Q3 2023[24] Cost Reductions and Restructuring - Intel is on track to achieve $10 billion in cost reductions by 2025[1][5] - Restructuring and other charges in Q3 2024 included employee severance, real estate exits, and asset impairments[29] Technology and Partnerships - Intel 18A process node is progressing well, with lead products Panther Lake and Clearwater Forest meeting early milestones[9] - Intel and AWS are finalizing a multi-billion-dollar partnership for custom Xeon 6 and AI fabric chips[9] - Intel was awarded up to $3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program[9] - Intel plans to ship over 100 million AI PCs by the end of 2025[8] Cash Flow and Capital Expenditures - Cash and cash equivalents increased to $8.785 billion in Q3 2024 from $7.079 billion at the end of 2023[22] - Net cash provided by operating activities for the nine months ended Sep 28, 2024, was $5.123 billion, down from $6.847 billion in the same period in 2023[23] - Additions to property, plant, and equipment for the nine months ended Sep 28, 2024, were $18.110 billion, slightly lower than $19.054 billion in the same period in 2023[23] - Adjusted free cash flow for Q3 2024 was negative $2.702 billion, compared to positive $943 million in Q3 2023[32] - Non-GAAP net capital spending for full-year 2024 is projected to be $11.0 billion[36] Assets and Liabilities - Total assets increased slightly to $193.542 billion in Q3 2024 from $191.572 billion at the end of 2023[22] - Total Intel employees decreased to 124,100 in Q3 2024 from 125,200 in Q3 2023[21] Financial Metrics and Adjustments - Intel uses a long-term projected non-GAAP tax rate of 13% for financial adjustments[26] - Adjusted free cash flow is used by Intel to assess liquidity and capital resources[29] - Net capital spending is a key metric for Intel's capital investment activities[30] - Non-GAAP R&D and MG&A for full-year 2025 is estimated to be $17.5 billion[36]

Intel CEO Pat Gelsinger holds an artificial intelligence processor as he speaks during the Computex conference in Taipei, Taiwan, on June 4, 2024. Intel shares jumped 12% in extended trading on Thursday after the chipmaker reported better-than-expected revenue and issued quarterly guidance that topped expectations. Here's how the company did in comparison with LSEG consensus: Earnings per share: Loss of 46 cents adjusted Revenue: $13.28 billion vs. $13.02 billion expected Intel's revenue declined 6% year ov ...

Boo! These stocks have all lost more than half of their value in just five years.Halloween can be a scary time for trick-or-treaters, but if you've invested in risky stocks over the years, looking at your portfolio at any time can be frightening. While stocks can, in general, deliver great long-term returns, risky investments can lead to crippling losses. And while buying and holding a stock for the long term can result in a sizable return for investors, that's by no means going to be the case in all situat ...