News Intel 1Q24 Earnings Report

[Hitman928]

Reserved, should be released shortly.

Results are not great, neither is the forecast. Will post more as I can sparse through it.

• Intel press release (NASDAQ:INTC): Q1 Non-GAAP EPS of $0.18 beats by $0.04.
• Revenue of $12.7B (+8.5% Y/Y) misses by $80M.
• Forecasting second-quarter 2024 revenue of $12.5 billion to $13.5 billion; expecting second-quarter EPS of $(0.05); non-GAAP EPS of $0.10. Q2 revenue consensus of $13.59B, EPS consensus of $0.26
• Net sales by category: Client Computing: $7.5B (30.0 Y/Y %); Data Center and AI: $3B (-19.4 Y/Y %); Network and Edge: $1.4B (-6.0 Y/Y %); Mobileye: $239M (-47.8 Y/Y %);

Edit: I put Intel's revenue by category table from their press release here, but it seems to be wrong and the text above is correct.
Edit2: I forgot that Intel switched up their accounting and has broken out into additional segmentation. So, the above numbers are correct under the old accounting and the following table is correct under the new accounting. The main difference is that Altera is now it's own category rather than being inside of DCAI.



More details from presentation slides:

Client groups is the only one really making any money for Intel right now.

 

[NTMBK]

I'll grab the popcorn

 

[Hitman928]

Any predictions while we wait?

I saw some reports that Q1 PC sales, especially notebooks, were better than expected, so I think consumer numbers will come in strong. DC I think will still be a pain point as so much money is going into AI and Intel only has been able to grab a very small piece of that pie. GPU sales should be close to nothing. I can't remember if they are switching their accounting starting this quarter (I believe they are) but if so, then gross margins will probably go up across the (design units) board as they pass on costs to IFS. IFS should still be deep in the red though overall revenue may go up a little.

Could be wrong on all of this, just speculation.

 

[Hitman928]

Results being posted now.

 

[Hitman928]

Intel's official revenue table by segment has multiple errors in it. Very strange.

 

[Ghostsonplanets]

Intel Products Highlights

• CCG: Intel continues to advance its mission to bring AI everywhere. As of the end of the first quarter, more than 5 million AI PCs have shipped since the December 2023 launch of Intel® Core™ Ultra processors, supported by more than 100 software vendors. Intel expects to exceed its prior forecast of 40 million AI PCs by the end of 2024.
  
  
  
• DCAI: At Intel Vision, the company introduced the Intel® Gaudi® 3 AI accelerator, projected to deliver on-average 50% faster inference and 40% greater inference power efficiency than Nvidia H1001 on leading generative AI (GenAI) models. Intel also announced new Intel Gaudi accelerator customers and partners, including NAVER, Dell Technologies, Bosch, Supermicro and many others. Additionally, the next-generation E-core Intel® Xeon®, code-named Sierra Forest, achieved product release this week, and Intel expects Granite Rapids to be released in the third quarter.
  
  
  
• NEX: At Mobile World Congress in Barcelona, Intel introduced the new Intel Edge Platform – a modular, open software platform enabling enterprises to develop, deploy, and manage edge and AI applications at scale. The Intel Edge Platform has broad ecosystem support from Amazon Web Services, Lenovo, Red Hat, SAP and Wipro. Intel also announced the Open Platform for Enterprise AI, which aims to accelerate secure, cost-effective GenAI deployments for businesses by driving interoperability across a diverse and heterogeneous ecosystem, starting with retrieval-augmented generation (RAG).

 

[Ghostsonplanets]

Intel Foundry Highlights

• Intel continues to drive customer adoption of Intel 18A, with a major U.S. aerospace and defense customer committing to Intel 18A, bringing Intel Foundry's external customer commitments on Intel 18A to six. This quarter, Microsoft also announced its plans to design a chip on Intel 18A.
  
  
  
• Intel Foundry has a strong pipeline of nearly 50 customer test chips, and has engagements with almost every foundry customer in the industry on advanced packaging, including five design awards.

 

[Ghostsonplanets]

Intel Products Highlights

• CCG: Intel continues to advance its mission to bring AI everywhere. As of the end of the first quarter, more than 5 million AI PCs have shipped since the December 2023 launch of Intel® Core™ Ultra processors, supported by more than 100 software vendors. Intel expects to exceed its prior forecast of 40 million AI PCs by the end of 2024.
  
  
  
• DCAI: At Intel Vision, the company introduced the Intel® Gaudi® 3 AI accelerator, projected to deliver on-average 50% faster inference and 40% greater inference power efficiency than Nvidia H1001 on leading generative AI (GenAI) models. Intel also announced new Intel Gaudi accelerator customers and partners, including NAVER, Dell Technologies, Bosch, Supermicro and many others. Additionally, the next-generation E-core Intel® Xeon®, code-named Sierra Forest, achieved product release this week, and Intel expects Granite Rapids to be released in the third quarter.
  
  
  
• NEX: At Mobile World Congress in Barcelona, Intel introduced the new Intel Edge Platform – a modular, open software platform enabling enterprises to develop, deploy, and manage edge and AI applications at scale. The Intel Edge Platform has broad ecosystem support from Amazon Web Services, Lenovo, Red Hat, SAP and Wipro. Intel also announced the Open Platform for Enterprise AI, which aims to accelerate secure, cost-effective GenAI deployments for businesses by driving interoperability across a diverse and heterogeneous ecosystem, starting with retrieval-augmented generation (RAG).

DCAI is up, but barely. I assume it's pushed by Gaudi 2 surge in sales in the wake of the AI boom. Hopefully Granite Rapids and Sierra Forest can rebound things a little for Intel.

 

[adroc_thurston]

Hopefully Granite Rapids and Sierra Forest can rebound things a little for Intel.

Lol

 

[adroc_thurston]

HAHAHAHAHHA hahahahaha hahaaaaaaaaa YES.
It's nothing!

Can't wait for the call, the street gonna eat Pat ALIVE.

 

[gdansk]

View attachment 97835
HAHAHAHAHHA hahahahaha hahaaaaaaaaa YES.
It's nothing!

That's not awful is it?
How much does it cost to design a big matrix multiplier?

 

[Hitman928]

DCAI is up, but barely. I assume it's pushed by Gaudi 2 surge in sales in the wake of the AI boom. Hopefully Granite Rapids and Sierra Forest can rebound things a little for Intel.

It's not up though, it's down. There are errors in their table. Here is their table with my corrections.

Edit: Deleted table. Explanation for difference in numbers added to the OP.

 

[Ghostsonplanets]

Lol

I mean...Well...There should be one or two customers who are loyal to Intel and won't go for Turin/Turin-D, right? Σ(っ °Д °)っ

 

[adroc_thurston]

That's not awful is it?

AMD public commitments are many times more than that and I don't even talk about street projections for MI300 from UBS Keyblanc etc.

 

[Ghostsonplanets]

View attachment 97835
HAHAHAHAHHA hahahahaha hahaaaaaaaaa YES.
It's nothing!

Can't wait for the call, the street gonna eat Pat ALIVE.

That's not good ooof.

It's not up though, it's down. There are errors in their table. Here is their table with my corrections.

View attachment 97839

You can check my math from here and here.

Jesus! Welp... I dunno how can Intel rebound from this on DCAI.

 

[gdansk]

AMD public commitments are many times more than that and I don't even talk about street projections for MI300 from UBS Keyblanc etc.

Well that's a more capable device with a larger TAM and in production for longer. And presumably was more expensive to develop too.

 

[adroc_thurston]

That's not good ooof.

RIP my bro Pat, fed to Wall St. cannibals in some minutes.

 

[Hitman928]

View attachment 97835
HAHAHAHAHHA hahahahaha hahaaaaaaaaa YES.
It's nothing!

Can't wait for the call, the street gonna eat Pat ALIVE.

Well, stock is currently down 9% after market, so initial reaction is not good.

 

[adroc_thurston]

Well, stock is currently down 9% after market, so initial reaction is not good.

The call will be MAGNIFICENT, literally leopards eating people's faces.

 

[Hitman928]

Keep in mind that Q1 2023 was also basically Intel's worst quarter ever (revenue by quarter shown below), so to have such a lackluster Y/Y comparison basically shows that Intel is no where near in recovery mode yet.

 

[Hitman928]

The call will be MAGNIFICENT, literally leopards eating people's faces.

I usually don't bother with Intel's earning call because they say a bunch of words but don't really say anything at all. This one might be interesting though if the analysts do their job.

 

[adroc_thurston]

This one might be interesting though if the analysts do their job.

They ain't gonna let Stacy talk but others might do the grilling as well.
Here's hoping!

 

[ikjadoon]

It's not up though, it's down. There are errors in their table. Here is their table with my corrections.

View attachment 97839

You can check my math from here and here.

I believe Intel changed all their prior reporting to clean up their IFS financial splits, no? From the first link,

All prior-period segment data has been retrospectively adjusted to reflect the way the company internally receives information and manages and monitors its operating segment performance starting in fiscal year 2024. There are no changes to Intel’s consolidated financial statements for any prior periods.

I don't know how to reconcile the two (especially as Intel does internal modeling to segregate the two), but the new "bucket" for DCAI is not the same as the old "bucket" for DCAI last year.

//

EDIT: the Next Platform gave it a shot,

 

[Tigerick]

I believe Intel changed all their prior reporting to clean up their IFS financial splits, no? From the first link,



I don't know how to reconcile the two (especially as Intel does internal modeling to segregate the two), but the new "bucket" for DCAI is not the same as the old "bucket" for DCAI last year.

Intel split out Altera from DCAI this year, that's why DCAI's revenue is lower, still...

 

[Ghostsonplanets]

What are even the prospects Intel has for the rest of the year and going into 25? Mobile Client might be fine if they push MTL/LNL/ARL at lower prices than competition (Will hurt margins though). But they're missing DC and AI rush entirely with non-competitive options. They should be looking into accelerating Diamond Rapids and Falcon Shores as much as possible.