Intel's Q4 Earnings Preview: CEO Ousted, Revenue Decline Expected
Key Metrics:
* Earnings per Share (EPS): $0.12 (expected)
* Revenue: $13.8 billion (expected)
Company Overview:
Intel, led by co-CEOs David Zinsner and Michelle Johnston Holthaus, faces market challenges and a search for a permanent CEO. Despite announcing agreements with Amazon Web Services and Microsoft, the foundry business remains a drag on revenue.
Financial Performance:
Intel's stock has declined 54% in the past year, reporting a historic quarterly loss last quarter. The Client Computing and Data Center businesses have seen revenue declines.
Competition and Market Dynamics:
Rival AMD has lost 36% in value, while Nvidia's growth continues despite recent volatility. Intel's PC market remains stagnant, with AI initiatives not yet having a significant impact. The Data Center business lags behind competitors like Nvidia in AI chip development.
Outlook:
Intel is investing in new facilities but faces the challenge of a flat PC market. The Data Center business is expected to underperform competitors. The company's AI chip development remains behind industry leaders.