Intel Corporation (NASDAQ:INTC) has released its first-quarter 2024 results, showcasing solid performance in earnings while facing revenue challenges attributed to a tough macroeconomic environment and supply constraints.

Net Income

Intel reported a GAAP loss of $381 million or a loss of 9 cents per share, a significant improvement compared to the loss of $2,758 million or a loss of 66 cents per share in the same quarter last year. Non-GAAP earnings stood at $759 million or 18 cents per share, surpassing the Consensus Estimate by 5 cents.

Revenues

GAAP revenues reached $12,724 million, up from $11,715 million year-over-year but slightly missing the consensus estimate of $12,909 million. The company cited weaker demand trends due to economic challenges and supply limitations. However, Intel anticipates sequential revenue improvement throughout 2024 and 2025, driven by AI PCs, data center recovery, and recoveries in NEX, Mobileye, and Altera.

Segment Performance

Intel introduced an internal foundry operating model, reshaping its operational structure and segment reporting. CCG revenues surged 31% to $7,533 million, buoyed by gaming and commercial segments. DCAI revenues grew 5% to $3,036 million, supported by advancements in AI-accelerated HPC. NEX revenues declined 8% to $1,364 million due to elevated inventory levels and soft demand, especially in China.

Other Operating Details

Non-GAAP gross margin improved to 45.1%, and non-GAAP operating margin rose to 5.7%. Cash and cash equivalents stood at $6,923 million, with $47,869 million in long-term debt.

Outlook

For Q2 2024, Intel forecasts GAAP revenues between $12.5 billion and $13.5 billion, with a non-GAAP gross margin of 43.5% and non-GAAP earnings around 10 cents per share.

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