AI Push
Currently, the chipmaker’s growth initiatives are focused on tapping into the rapid adoption of artificial intelligence. Recently, the company announced new AI-enabled chips for automobile manufacturers that will enable them to offer enhanced AI-powered experiences to customers.
Intel will be reporting fourth-quarter results on January 25, at 4:00 p.m. ET. Wall Street is looking for a multi-fold year-over-year increase in earnings to $0.45 per share, on an adjusted basis, which is lower by one cent than the earnings guidance issued by the company recently. In the year-ago quarter, the company had reported earnings of $0.1 per share. The consensus revenue estimate is $15.16 billion, which comes at the higher end of the management’s Q4 revenue forecast of $14.6-15.6 billion.
From Intel’s Q3 2023 earnings call:
“More important than our standout financial performance were the key operational milestones we achieved in the quarter across process and products, Intel Foundry Services, and our strategy to bring AI everywhere. Simply put, this quarter demonstrates the meaningful progress we have made toward our IDM 2.0 transformation. The foundation of our strategy is reestablishing transistor power and performance leadership.”
Key Numbers
Intel has a good track record of delivering better-than-expected quarterly earnings. The trend continued in the September quarter, marking the third beat in a row. At $0.41 per share, Q3 adjusted earnings were up 11% year-over-year. However, the top-line performance was not that impressive – revenues declined 8% annually to $14.2 billion, mainly due to a dip in the core Client Computing revenue. The Datacenter and Network segments also contracted, which was partially offset by a strong performance by the Mobileye and Foundry Services businesses.
After experiencing volatility since the beginning of 2024, shares of Intel closed the last trading session slightly higher.