Intel announced its Q3 2024 financial results, reporting revenues of $13.3 billion, down 6% year-over-year but up from the previous quarter. Despite this, the company faced a staggering $16.6 billion loss due to substantial impairment charges and issues with its manufacturing unit. The Client Computing Group remained the strongest division, while the Data Center and AI Group saw a revenue rise to $3.3 billion. The outlook for Q4 anticipates revenues between $13.3 billion and $14.3 billion.
Intel a annoncé ses résultats financiers du troisième trimestre 2024, affichant un chiffre d’affaires de 13,3 milliards de dollars, en baisse de 6 % par rapport à l’année précédente, mais en hausse par rapport au trimestre précédent. Malgré cela, l’entreprise a subi une perte colossale de 16,6 milliards de dollars en raison de charges de dépréciation substantielles et de problèmes dans son unité de fabrication. Le groupe de l’informatique client est resté la division la plus forte, tandis que le groupe de centre de données et d’IA a vu ses revenus passer à 3,3 milliards de dollars. Les prévisions pour le quatrième trimestre anticipent des revenus entre 13,3 et 14,3 milliards de dollars.
Intel announced its financial results for the third quarter of 2024 on Thursday. While the company’s revenue exceeded expectations at $13.3 billion, it faced significant impairment and restructuring costs, leading to a staggering $16.6 billion loss. Surprisingly, Intel’s stock price initially surged by as much as 12% after the announcement, although it later stabilized at around a 7% increase at the time of reporting.
The revenue of $13.3 billion represents a 6% decrease compared to the previous year, but it shows an increase of $0.5 billion from the preceding quarter. This unprecedented net loss of $16.6 billion was driven by substantial impairment and restructuring expenses, along with significant losses in the manufacturing sector. Intel’s gross margin fell to 15%, marking a record low for the company.
The product division of Intel reported profits with revenues of approximately $12.997 billion. The Foundry unit generated $4.4 billion, a slight increase from $4.3 billion in the previous quarter but down from $4.7 billion a year earlier. In contrast, the chip production division faced a massive loss of $5.8 billion.
Pat Gelsinger, Intel’s CEO, stated, « Our Q3 results highlight the significant progress we are making on the plan we laid out last quarter to cut costs, streamline our portfolio, and enhance organizational efficiency. We achieved revenue above the midpoint of our guidance and are acting swiftly to position the business for sustainable value creation moving forward. The momentum we are generating across our product lineup to maximize the value of our x86 franchise, alongside strong interest in Intel 18A from foundry clients, demonstrates the effectiveness of our actions and the opportunities that lie ahead. »
Intel’s Client Computing Group: A Minor Sequential Gain
Intel’s Client Computing Group remains its leading division, generating $7.3 billion in the third quarter. This is a decline from $7.9 billion in the same quarter last year and a slight decrease of $100 million compared to the second quarter of 2024. The group achieved an operating margin of 37.1%, resulting in an operating profit of $2.7 billion.
During this quarter, Intel commenced shipments of its Arrow Lake-S processors aimed at enthusiasts and Lunar Lake CPUs designed for compact laptops. However, it appears that these new products have yet to significantly impact Intel’s Client Computing Group sales.
Intel’s Datacenter and AI Group: A Welcome Increase
Intel’s Data Center and AI Group (DCAI) reported $3.3 billion in revenue, showing improvements both sequentially and year-over-year, which is encouraging news for the company. The operating margin for this unit climbed to 10.4%, yet its operating profit remained at a modest $0.3 billion, which is unexpected given the launch of the new high-margin Xeon 6 data center CPUs.
The low volume of Xeon 6 shipments may have limited their impact on DCAI’s performance, which could be anticipated as the company is still in the early phases of ramping up production.
Altera, Edge, Network, and Mobileye: Varied Outcomes
Intel’s NEX division, focused on developing products for 5G, edge computing, networking, and telecommunications, reported $1.5 billion in revenue, stable year-over-year and up $200 million quarter-over-quarter. This unit also saw an increase in operational profit to $300 million.
Mobileye experienced a revenue upswing, reaching $485 million in Q3 2024, up from $440 million in Q2 but still below the $530 million noted in Q3 last year. The segment’s operating income was $78 million, down from $170 million in Q3 2023, remaining flat compared to the prior quarter.
Conversely, Altera faced another difficult quarter, with revenue climbing to $412 million, much higher than $361 million from the previous quarter, yet significantly lower than $735 million from Q3 2023. The unit recorded a profit of $9 million, down sharply from $263 million the same time last year, yet an improvement over the $25 million loss in Q2 2024.
Cautious Outlook
Intel is projecting fourth-quarter 2024 revenue between $13.3 billion and $14.3 billion, down from $15.4 billion recorded in the same period last year, despite the updated product offerings. Additionally, the company expects its GAAP gross margin to rise to 36.5%, reflecting competitive market pressures and the absence of restructuring charges.
Intel a annoncé ses résultats financiers