IntelUnder its new financial structure, the company announcedFirstquarterly results, aiming to establish itself asAI HardwareFieldLeadersThe company reported todayFirstQuarterly revenue was $12.7 billion, up 91% year-on-year. Revenue for the second quarter of 2024 is forecast to be between $12.5 billion and $13.5 billion.
althoughFirstThe company's earnings beat analysts' expectations for the quarter, but the company's second-quarter outlook sent shares down 81% as it missed analysts' expectations for the upcoming quarter of $13.63 billion. Its adjusted EPS was $0.18 on revenue of $12.72 billion.
"We made solid progress," Intel CEO Pat Gelsinger said on an earnings call today.FirstHe noted that the numbers were "a little bit weaker than we expected," and that Intel expectsFirstThe quarter will be the "trough" and revenue growth will gradually accelerate throughout the year.
However, Intel executives touted the company’s growing AI capabilities. Notably, it is challenging rivals Nvidia and AMD with the launch of its new Gaudi 3 AI accelerator, which it says will deliver an average of 50% faster inference speed and 40% higher inference power efficiency on major AI models than the Nvidia H1001. Intel is also increasingly emphasizing its AI PC Product line.
Intel recently announced a reorganization that puts revenues from its Client Computing Group, Data Center and AI, and Networking and Edge divisions under the umbrella of “Intel Products.” Intel’s foundry semiconductor business is now reported under “Intel Foundry.” Its semiconductor business Altera, software business Mobileye, and other functions are now under the new “Other” division.
The company's Intel products reached $11.9 billion, up 17% year-over-year. Its client computing products grew to $7.5 billion, up 31% year-over-year. Its data center and AI products reached $3 billion (up 5% year-over-year), and its network and edge division grew to $1.4 billion (8% year-over-year). In contrast, "other" revenue was $775 million, down 46% year-over-year. In addition, its Intel wafer foundry business reported quarterly revenue of $4.4 billion, down 10% year-over-year.
Intel continues to roll out its AI PC products, with shipments exceeding initial expectations. The company launched the Intel CoresuperProcessor, as ofFirstAt the end of the quarter, more than 5 million AI PCs had been shipped. The company expects to exceed its previous forecast of 40 million AI PCs by the end of 2024.
"We are defining and leading the AI PC category," Gelsinger said, noting that units are on track to double in the second quarter. "This is a hot product. We're just getting incremental growth on our AI PCs."
He noted that there were some limitations in the level of the crystal circle and in the capacity of the company “to try to catch up” and to create more crystal circle-level components. Gaelsinger described AI PC as a new category with many and growing use cases. Every independent software provider (ISV) is in "AI-Performation" of their application, which he calls "Wi-Fi and WiMAX Wimax Wireless Computer Network Adapters."。
He said, "Every PC will be AI PC over time." "We will get incremental benefits from AI PC." At the back end, the company Gaudi3 and Falcon Shores, according to Intel, are specially designed for artificial intelligence work loadsFirstTHE GPU STRUCTURE IS EXPECTED TO BE LAUNCHED NEXT YEAR。