Intel Q4 Earnings Preview: Revenue Decline, Foundry Business Damping Results
Intel (INTC) is poised to release its fourth-quarter earnings after market close on Thursday, marking its first such report following the ousting of CEO Pat Gelsinger.
Key Financials:
* Q4 Earnings per Share (EPS) Estimate: $0.12
* Q4 Revenue Estimate: $13.8 billion
These estimates represent a significant decline from Q4 2022, where the company reported EPS of $0.54 and revenue of $15.4 billion.
Business Highlights:
* Client Computing: Projected revenue of $7.8 billion, down from $8.8 billion last year
* Data Center: Anticipated revenue of $3.3 billion, lower than last year's $3.9 billion
* Intel Foundry: Expected to reach $4.5 billion, a rise from $291 million in Q4 2023
Intel's foundry business, while nascent, continues to pose a challenge, despite partnerships with Amazon Web Services and Microsoft.
Industry Trends:
Intel is not alone in facing industry headwinds. Rival AMD (AMD) has declined 36% in the past year. However, Nvidia (NVDA) stands out with an impressive 93% gain, despite recent concerns over China's DeepSeek AI.
Outlook:
* Intel is expanding its US manufacturing facilities for chip research and production.
* However, the flat PC market poses a challenge, despite expectations of AI PCs bolstering the sector.
* While Intel is pursuing AI chip development, it faces a competitive landscape dominated by market leaders.