Intel's Q4 Earnings: Amid CEO Transition and Industry Headwinds
Intel (INTC) is set to release its fourth-quarter earnings after market close on Thursday, marking its first earnings announcement since CEO Pat Gelsinger's departure. The company is led by co-CEOs David Zinsner (CFO) and Michelle Johnston Holthaus (CEO of Intel Products), while the search for a permanent CEO continues.
Intel's stock has plummeted 54% over the past year, incurring its largest quarterly loss in its history last quarter. The chipmaking industry faces challenges, with rival AMD (AMD) down 36% and Nvidia (NVDA) experiencing a recent decline despite a 93% gain over the past year.
Intel's foundry business remains a concern despite partnerships with Amazon Web Services and Microsoft. Bloomberg consensus forecasts Intel to report earnings per share of $0.12 on revenue of $13.8 billion, significantly lower than the $0.54 EPS and $15.4 billion revenue reported in Q4 2023.
The Client Computing business is projected to shrink to $7.8 billion from $8.8 billion, while the data center business is estimated to fall to $3.3 billion from $3.9 billion. However, the Intel Foundry business is expected to rise to $4.5 billion from $291 million in Q4 2023.
Intel's expansion plans for research and chip manufacturing facilities across the US face headwinds in a flat PC market. Despite promises of AI PC growth in 2024, IDC reports only a 1% increase in PC shipments, with uncertainty persisting for 2025.
The data center business faces competition from Nvidia, and Intel's efforts to develop AI chips lag behind industry leaders. The timing of catching up remains uncertain.