The following is a summary of the Intel Corporation (INTC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Intel reported a Q1 revenue of $12.7 billion, with a YoY growth of 9%.
The quarter witnessed a gross margin of 45.1%, surpassing the guidance by 60 basis points.
The company's EPS stood at $0.18 for the quarter, exceeding the guidance by $0.05.
Operating cash flow was recorded as negative $1.2 billion.
The company anticipates stronger sequential revenue growth throughout the year and into 2025.
Intel predicts peaking of costs in 2024, with revenue improvements in Q3 and Q4 that will help lift gross margins in the second half.
The company projects better gross margin rates in 2025 than in 2024, targeting mid-50s margins midway between now and 2030, with an ultimate aim of 60%.
Business Progress:
Intel announced Microsoft as its fifth Intel 18A customer, with another meaningful customer signed on.
Intel launched the next-generation Gaudi 3 accelerator and the Open Platform for Enterprise AI project.
The first sustainability summit in the industry was hosted by the company, showcasing its commitment to supply chains that are diverse, resilient, trusted, and sustainable.
Intel successfully transitioned to a new operating model and introduced Intel Products and Intel Foundry.
Clearwater Forest, the first Intel 18A product, is slated to be launched next year, enabling Intel to accelerate share gains.
Intel is preparing for the IPO of Altera with a plan to bring in a private equity partner this year.
Intel showed progress in its IDM 2.0 vision, high customer interest in Xeon's AI capabilities, and the launching of Sierra Forest, a Xeon 6 product.
The company hinted at adjusting the volatility of its gross margin, aligning it more with revenue growth, spending parameters in the fabs, start-up costs, and the mix.
There are expectations of around $500 million in revenue from the introductory Gaudi product, and Intel believes better enterprise AI offerings will trigger significant business growth.
The company foresees its foundry business breaking even by 2030.
For software, Intel is developing a seamless transition from Gaudi 3 to Falcon Shores, with added programmability advantages with Falcon Shores.
More details: Intel IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.