Intel (INTC -2.90%) has largely failed to tap into soaring demand for artificial intelligence (AI) accelerators. The company's acquisition of AI chip start-up Habana Labs back in 2019, three years before the AI boom kicked off in earnest, certainly seemed like a prescient move. Habana's Gaudi family of AI accelerators, which were tailor-made for AI workloads compared to more general-purpose GPUs, had all the makings of a big winner.Intel is now on the third generation of its Gaudi AI chips, and progress has ...

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Core Insights - Intel has made significant progress in its server CPU business, particularly with the launch of new products in 2024, but it continues to face competition from AMD and challenges in the market [1][2][3] Product Developments - In 2024, Intel introduced two new families of server CPUs: Sierra Forest, designed for cloud workloads with up to 144 cores, and Granite Rapids, aimed at compute-intensive applications with a maximum of 128 cores [2] - Both Sierra Forest and Granite Rapids are built on the Intel 3 process, which represents a substantial improvement over the older Intel 7 process, although it still lags behind TSMC's advanced processes [3] Future Products - Clearwater Forest, the successor to Sierra Forest, has been delayed to the first half of 2026 due to complications in packaging requirements, but it is expected to be built on the Intel 18A process, which could bring Intel back to parity with TSMC [5][7] - Clearwater Forest is anticipated to feature innovations such as a new transistor design and "Local Cache" for improved efficiency and performance [7] Market Position and Strategy - Intel is focusing on stabilizing its market share with Sierra Forest and Granite Rapids while addressing competitive pressures from AMD and the shift towards AI accelerators in data centers [6][9] - The data center segment has seen a decline, with revenue dropping 3% year-over-year to $3.4 billion and operating profit falling to $233 million [9] Pricing Strategy - To combat market share losses, Intel has reduced the list prices of Granite Rapids significantly, enhancing its value proposition [8][10] - The company aims to leverage its solid product lineup and attractive pricing to halt market share losses in the data center segment [10][11]

Semiconductor Supply Chain and Manufacturing - The company is strategically positioning itself to create a resilient global semiconductor supply chain by investing in geographically balanced manufacturing capacity[23]. - The global factory network includes wafer manufacturing facilities in the US, Ireland, and Israel, and assembly and testing facilities in multiple countries[34]. - The company is committed to building manufacturing capacity to meet the growing long-term global demand for semiconductors[41]. - The company plans to continue utilizing external foundries to support its product offerings where necessary[39]. - The company is expanding its manufacturing capacity in Ireland and Arizona while reassessing plans for new facilities in Ohio and Germany[65]. - Intel Foundry plans to achieve volume production on its 2nm node, Intel 18A, by 2025, with advanced process technologies including RibbonFET and PowerVia[135]. - The company is pursuing a strategy to become a major provider of semiconductor manufacturing solutions for third parties, while maintaining significant scale from its own products[134]. - The company signed an agreement for up to $7.9 billion in direct funding under the CHIPS Act to support semiconductor manufacturing in the US[69]. Product Development and Innovation - In 2024, the company announced the creation of an advisory group to expand the x86 ecosystem, focusing on performance and efficiency[26]. - The company aims to deliver open software and hardware platforms with industry-defining standards, contributing to the development of standards such as CXL and PCI Express[30]. - The company is addressing every phase of the AI continuum, from GenAI to AI at the edge, believing AI represents a generational shift in computing[28]. - The company continues to develop new generations of manufacturing process technology to realize the benefits from Moore's Law, optimizing performance and cost[33]. - The company is focused on product competitiveness, aiming to lead and democratize compute with Intel x86 and xPU products[25]. - The company is committed to co-engineering and jointly designing new products with software industry leaders to accelerate technology advancements[31]. - In 2024, the company launched the Intel Core Ultra Series 1, its first product with an integrated neural processing unit, and the Intel Core Ultra 200V Series, showcasing improved efficiency and battery life[57]. - The Intel Xeon 6 processors for data centers were launched in 2024, utilizing the Intel 3 process, addressing diverse workloads in data center environments[57]. - The Intel Arc B-Series was introduced in 2024, delivering 70% more performance per core and 50% more power efficiency compared to the previous generation[57]. - DCAI is focused on expanding its portfolio of heterogeneous compute solutions, including IPUs and AI accelerators, to capitalize on the growing AI market[108]. Financial Performance and Investments - 2024 revenue was $53.1 billion, down $1.1 billion, or 2% from 2023, primarily due to a 32% decrease in all other revenue and a 60% decrease in Intel Foundry external revenue[94]. - Intel invested $16.5 billion in R&D and made gross capital investments of $25.1 billion in 2024, with cash from operations at $8.3 billion and adjusted free cash flow at negative $2.2 billion[95]. - The company generated $8.3 billion in net cash from operating activities in 2024, a decrease of $3.2 billion compared to 2023[184]. - Total cash and short-term investments as of December 28, 2024, amounted to $22.1 billion, down from $25.0 billion on December 30, 2023[181]. - The company incurred $23.9 billion in capital expenditures in 2024, compared to $25.8 billion in 2023[187]. - The company has commitments for capital expenditures of $14.0 billion for 2025 and $6.0 billion in the long term as of December 28, 2024[179]. - The company received $1.1 billion in cash from government incentives in 2024 and expects to receive an additional $1.1 billion in 2025[178]. - The company reported a net loss in 2024, which was offset by higher favorable operating cash flow adjustments compared to 2023[186]. - The company incurred R&D expenses of $16.5 billion in 2024, $16.0 billion in 2023, and $17.5 billion in 2022, focusing on process technology, AI, and software[201]. Workforce and Diversity - The workforce comprised 108,900 employees as of December 28, 2024, with a projected 15% decrease in core workforce by early 2025 due to restructuring[74][76]. - Women represented 27.9% of global employees and 18.3% of senior leadership positions in 2024[78]. - The undesired turnover rate was 5.9% in 2024, reflecting the competitive talent landscape in the semiconductor industry[76]. Environmental and Sustainability Goals - Intel aims to reduce 2024 Scope 1 and 2 greenhouse gas emissions by 25,000 metric tons of CO2 equivalent compared to 2023, linking a portion of performance bonuses to this goal[87]. - The company targets to achieve 95% renewable electricity use globally in 2024, with a portion of performance bonuses tied to this objective[88]. - Intel's water conservation target for 2024 is to conserve and restore 13.5 billion gallons of water, with performance bonuses linked to this goal[89]. - The company aims for a recycling rate of over 90% for construction waste in 2024, with performance bonuses also tied to this interim target[90]. Challenges and Risks - The competitive landscape has intensified, with increased competition from companies like TSMC and Samsung, as well as from OEMs developing their own semiconductors[196]. - The company faces challenges in maintaining leading-edge process technology and manufacturing capacity, requiring significant capital expenditures above historical levels[202]. - The company has experienced significant delays in implementing new process technologies, including 10nm and 7nm, which have allowed competitors to gain advantages[204]. - The company’s disaggregated design strategy introduces logistical risks, as different components may be manufactured on varying process technologies, complicating timely product delivery[207]. - The company’s gross margin and operating income are at risk due to high fixed costs and potential underutilization of manufacturing capacity if demand decreases[202]. - The company is investing in five new manufacturing process technologies over four years, but these investments carry risks of not realizing favorable returns[201]. - The company faces risks related to compliance with government funding agreements, which may restrict business strategy flexibility[212].

Intel (INTC) reported strong fourth-quarter 2024 results, beating estimates on both earnings and revenues. However, the chipmaker offered a downbeat outlook for the ongoing quarter. See the Zacks Earnings Calendar to stay ahead of market-making news.Intel shares gained as much as 4% in aftermarket hours. Investors should keep a close eye on the ETFs having the highest allocation to the semiconductor player and tap the opportunity when it rises. These include First Trust Nasdaq Semiconductor ETF (FTXL) , REX ...

Even after accounting for the small pre-market rally in the stock after the Q4 FY2024 earnings release yesterday in the after-market hours, Intel Corporation (NASDAQ: INTC ) has underperformed the S&P500 ( SPYProviding alpha-generating investment ideas. I am an independent investor managing my family's portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge me on my performance ...

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]