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[winjer]

Intel Announces Q3 2024 Financial Results: Revenue of $13.3 Billion and Net Loss of $16.6 Billion

Intel Corporation has released its financial results for the third quarter of 2024, reporting total revenues of $13.3 billion, which exceeded market expectations.

www.guru3d.com

Intel lost $16.6 billion in Q3, reports $13.3 billion in revenue

Margin plummets to 15%

www.tomshardware.com

Intel Corporation has released its financial results for the third quarter of 2024, reporting total revenues of $13.3 billion, which exceeded market expectations. Despite this increase in revenue, the company reported a significant net loss of $16.6 billion. This loss was primarily attributed to substantial impairment and restructuring charges, along with considerable losses in the manufacturing division. Following the announcement, Intel's stock saw an initial rise of approximately 7%. The reported revenue of $13.3 billion marks a 6% decrease compared to the same quarter last year but shows a $0.5 billion increase from the second quarter of 2024. The net loss of $16.6 billion is an unprecedented figure for Intel and stems from large impairment and restructuring expenses, as well as significant losses within the manufacturing unit. Additionally, the company's gross margin fell to 15%, the lowest in its history.

Within Intel's organizational structure, the Products Group reported profits with revenues totaling approximately $12.997 billion. The Foundry unit generated $4.4 billion in revenue, a slight increase from $4.3 billion in the previous quarter but a decline from $4.7 billion in the same quarter last year. However, the chip production unit experienced a substantial loss of $5.8 billion. The Client Computing Group remained the company's leading division, generating $7.3 billion in revenue during the third quarter. This represents a decrease from $7.9 billion in the same period last year and a slight $100 million decline compared to the second quarter of 2024. The group achieved an operating margin of 37.1%, resulting in an operating profit of $2.7 billion. During the quarter, Intel began shipments of its Arrow Lake-S processors aimed at enthusiasts and Lunar Lake CPUs designed for compact laptops. However, these new product launches have not yet impacted the sales figures of the Client Computing Group.

In contrast, Intel's Data Center and AI Group (DCAI) reported revenue of $3.3 billion, showing growth both sequentially and year-over-year, which provides a positive outlook for the company's future performance. The operating margin for DCAI increased to 10.4%, yet the operating profit remained modest at $0.3 billion. This performance is notable considering the company's recent shipment of its high-margin Xeon 6 data center CPUs, which were expected to enhance profitability.

Overall, Intel's Q3 2024 financial performance presents a mixed picture. While revenue growth exceeded expectations, the substantial net loss highlights challenges within certain divisions, particularly the manufacturing unit. The marginal improvements in the Data Center and AI Group suggest potential stability and growth, but the company continues to face ongoing restructuring and impairment charges that significantly impact its overall financial results. Investors responded positively to the revenue increase, as reflected in the stock price movement, but the company's long-term financial health will depend on its ability to manage losses and effectively leverage its new product launches in upcoming quarters.

 

[nowhat]

Hooooly fuck. Even with new fabs being built and all, $16.6B loss is terrible.

I can't even leave a reaction to the op. We seriously need an "OMG cat" reaction.

 

[ThisIsMyDog]

 

[tusharngf]

 

[MikeM]

Their stock went up after hours and yet AMD went down after their earnings. Lol k

 

[Bernoulli]

 

[Von Hugh]

 

[winjer]

Hooooly fuck. Even with new fabs being built and all, $16.6B loss is terrible.

I can't even leave a reaction to the op. We seriously need an "OMG cat" reaction.

Their fabs are one of the main reason for this disaster.
If Intel doesn't manage to get 18A working by this time next year, they will be in a very bad situation.

 

[jason10mm]

I don't know much about corporate finance but

"Despite this increase in revenue, the company reported a significant net loss of $16.6 billion. This loss was primarily attributed to substantial impairment and restructuring charges, along with considerable losses in the manufacturing division"

Sounds a looooot like financial speak for "magic accounting" that let's them declare a massive loss on paper while everyone on the ground is looking around thinking "it all looks OK from here" right before they get pink slipped.

 

[DonkeyPunchJr]

Their stock went up after hours and yet AMD went down after their earnings. Lol k

Do you know how the stock market works? We knew there would be a massive loss, that was already baked into the price. It went up because the actual loss was not as bad as most people predicted.

 

[IFireflyl]

I can't even leave a reaction to the op. We seriously need an "OMG cat" reaction.

Is that not Pikachu...?

 

[nowhat]

Do you know how the stock market works?

I get your sentiment, but honestly, I don't think anyone does. It's all appearance and algorithms. Check out "Flash Boys". It's both a fascinating, and infuriating, read.

 

[nowhat]

Is that not Pikachu...?

How do I get that? When I hover over the like button, it doesn't show up to me. But yes, that'd be appropriate as well. I just like cats.

 

[IFireflyl]

How do I get that? When I hover over the like button, it doesn't show up to me. But yes, that'd be appropriate as well. I just like cats.

 

[nowhat]

Nah, I just prefer that being showered to me on occasion.

Edit: thanks for the gold, dear stranger!

 

[DonkeyPunchJr]

I get your sentiment, but honestly, I don't think anyone does. It's all appearance and algorithms. Check out "Flash Boys". It's both a fascinating, and infuriating, read.

Yeah fair enough, it’s just one of my pet peeves whenever someone (usually a fanboy) is like “OMG my favorite company turned a profit yet the stock price still fell, look how stupid everyone else is!”

 

[ShaiKhulud1989]

Wow, -16.6b in one quarter. No wonder that Pat is praying on X.

 

[Bojji]

Government will have to save them.

What a fucking shit show, from dominant position to this in few years.

 

[MikeM]

Do you know how the stock market works? We knew there would be a massive loss, that was already baked into the price. It went up because the actual loss was not as bad as most people predicted.

Nah first time bruh

 

[OverHeat]

Leonidas on suicide watch for real!!!

 

[Chiggs]

This is a good thread to post this in, too:

"A very discourteous fellow." Intel's CEO made comments that blew a huge discount deal on TSMC chips, wiping the firm's profit margins according to this damning report.

Reuters reports that Intel CEO Pat Gelsinger's comments blew up a long-standing deal with chip manufacturer TSMC, obliterating Intel's margins in the process.

www.windowscentral.com

Up until that point, Reuters sources say that Intel had enjoyed a lucrative 40% discount on 3-nanometer wafers. After the comments, TSMC terminated the agreement. TSMC founder Morris Chang had previously called Gelsinger a "very discourteous fellow," noting that "TSMC deals with Intel the way Intel deals with TSMC." Officially, TSMC and Intel are close partners, given that TSMC is responsible for some 60%+ of the chip manufacturing industry. But relationships may have strained as Intel has attempted (and thus far failed) to gain a foothold with its own fabs.

TL;DR: Dumbass Pat Gelsinger made comments that strained Intel's relationship with TSMC, wiping out a huge discount.

 

[Perrott]

How do you even have $30B of expenses in a single quarter?

 

[Magic Carpet]

Saw some article saying Intel makes more money making memory chips.
Apple sucking up all the good chips after doubling the memory of their devices has left a vacuum for all other devices that had to settle for what Intel could fill.

 

[SlimySnake]

Imagine losing $16 billion in 3 months and watching your stock go up.

Stock market is a scam. Always has been.

 

[Deerock71]

Is that not Pikachu...?

 

[LordCBH]

Someone is absolutely gonna snap these fuckers up lol

 

[HogIsland]

cap-ex is hard i guess?

bring on the battlemage handhelds!

 

[ReBurn]

How do you even have $30B of expenses in a single quarter?

Those darned kids forgetting to turn the lights off when they leave

 

[Skifi28]

How the turntables.

 

[HeisenbergFX4]

 

[FireFly]

Imagine losing $16 billion in 3 months and watching your stock go up.

Stock market is a scam. Always has been.

There was already a massive drop after the announcement of the restructuring. That's when the loss would have been priced in.

 

[LordOcidax]

Imagine losing $16 billion in 3 months and watching your stock go up.

Stock market is a scam. Always has been.

I think it’s going to drop really hard eventually.

 

[MrA]

Imagine losing $16 billion in 3 months and watching your stock go up.

Stock market is a scam. Always has been.

No, it isn't, but you seems to only be able to look at the last 5 seconds
Intel is down 50% this year, and 33% in the 6 months
people don't just invest around earnings calls
keep missing out due to your own ignorance and short sightedness, not my problem. I'll keep reaping the rewards of market, and you keep sitting there in envy

 

[twilo99]

Their fabs are one of the main reason for this disaster.
If Intel doesn't manage to get 18A working by this time next year, they will be in a very bad situation.

Quite bullish if they do make 18A work tho

 

[SportsFan581]

What kind of a budget is that when you literally lose more than you brought in. It must take dedication. A few billion down you can see, obviously the 14 series debacle. Did they do some kind of write off?

 

[Panajev2001a]

Quite bullish if they do make 18A work tho

Not really if they cannot get a good number of high profile external customers too.

TSMC just announced that they will be getting a delivery of ASML’s next-generation equipment soon. They are not standing still and have humongous volume of guaranteed orders.

 

[winjer]

Quite bullish if they do make 18A work tho

It all depends on them being able to get High NA working properly.
It's going to be an interesting thing to follow in 2025.

 

[MrA]

It all depends on them being able to get High NA working properly.
It's going to be an interesting thing to follow in 2025.

That's the rub isn't it? Intel gets there act together and Intel is a great buy, if they don't, plenty of value to lose

 

[KungFucius]

Its not going to get much better any time soon since their new chips are a fucking flop. Part of me chuckles because I worked there ages ago and leadership treated people like garbage. They kind of deserve this, but the people working there do not.

 

[LordOfChaos]

Intel is up more than most in the market today. Call it a trainwreck but the market is actually seeing this as an improvement, the bar was not just on the floor but below it in hell, and the impairments were expected and one time for this quarter.

 

[SonGoku]

Not really if they cannot get a good number of high profile external customers too.

TSMC just announced that they will be getting a delivery of ASML’s next-generation equipment soon. They are not standing still and have humongous volume of guaranteed orders.

Didn't intel pre order most of the stock of ASML newest EUV machines? I remember reading some articles about that a few months ago

 

[iQuasarLV]

Their fabs are one of the main reason for this disaster.
If Intel doesn't manage to get 18A working by this time next year, they will be in a very bad situation.

If we could only expand this to 2017 I think a lot of people would realize this has been an elongated profuse bleed of revenue.

AMD's return to competitive CPUs exposed just how badly Intel was stretching out their shitty business practices. When you operate on 10 year operational models shits going to suck for a long time before it gets better.

The easiest way to spot Intel's panic was the 11th Gen Core series. They began removing the software lockouts on their CPUs allowing them to pull more watts and run hotter just to stay close to the Ryzen performance while they attempted to adjust their models. Well the Core Ultras are here and yeah they fucked that up pretty badly. Reminds me of the Pentium+RAMBUS days.

 

[VolticArchangel]

That Apple acquisition is looking more and more likely, than just a rumor.

 

[nowhat]

It all depends on them being able to get High NA working properly.

They should hire me as a consultant. I'm currently high, and if anyone would want me to do something serious right now, I'd be like "naah". That works as properly as it ever could be. PM for hourly rates.

 

[LordOfChaos]

That Apple acquisition is looking more and more likely, than just a rumor.

Apple's still never bought anything larger than Beats at "only" 3 billion, tiny for a tech giant. Large acquisitions just don't seem in their DNA. And I doubt careful Tim Apple wants to get into the quagmire of the massive capex even for Apple that is staying on top of foundry nodes, something only TSMC has consistently done for the last many years.

 

[noob smokes]

Ms i can cut u a deal get intel for the low low
I just need a 1% cut off the top

 

[Panajev2001a]

Didn't intel pre order most of the stock of ASML newest EUV machines? I remember reading some articles about that a few months ago

Apparently it is not the case… .

 

[mckmas8808]

Do you know how the stock market works? We knew there would be a massive loss, that was already baked into the price. It went up because the actual loss was not as bad as most people predicted.

This is why the stock market is a horrible measurement for economic health.

 

[winjer]

Intel only bought the first ones. So they got a head start over TSMC.
But TSMC is going to receive their High NA machines before the end of this year.

 

[Negotiator]

Just imagine if China invades Taiwan... will the dollar/NASDAQ survive the onslaught?

I reckon it will be 100 times worse than Ukraine:

China Will Be Ready To Invade Taiwan By 2027, U.S. Admiral Says

Chinese President Xi Jinping has called for Taiwan to be reunited with China’s mainland since he first came to power.

www.forbes.com