Intel Corporation (INTC) released its fourth-quarter earnings report on Thursday, beating analyst expectations for both revenue and profit. Despite this positive outcome, the company’s guidance for the first quarter of next year was lower than anticipated.
The Nasdaq-listed chipmaker reported a revenue of $14.3 billion, exceeding estimates of $13.8 billion. Earnings per share (EPS) came in at $0.13, higher than the predicted $0.12. The company’s foundry business, which produces chips for Intel and third-party customers, is expected to generate meaningful external revenue by 2027.
Shares rose 2% in pre-market trading on Friday following the announcement. However, the market remains cautious due to a declining stock price over the past year, with shares down 54%. The company reported its largest quarterly loss last quarter and has struggled alongside rival AMD (AMD), which is also experiencing declining sales.
Intel’s foundry business generated $4.5 billion in revenue in line with expectations, while its Client Computing business saw revenue of $8 billion. The data center segment topped out at $3.39 billion, slightly above analyst projections.
The company plans to build new facilities for chip research and construction across the US but is facing challenges in a flat PC market. PC shipments rose only 1% in 2024, according to IDC, leaving room for uncertainty about future growth.
Analysts remain optimistic about Intel’s long-term prospects despite current setbacks. The impact of on-device AI on the industry will be positive, even if it takes time to materialize, according to Ryan Reith, group vice president at IDC’s Worldwide Device Trackers.
Source: https://finance.yahoo.com/news/intel-reports-q4-beats-on-top-and-bottom-line-stock-rises-on-foundry-revenue-outlook-181745845.html