Intel Q1 Revenue $12.72B, Gross Margin 45.1%

Intel has announced its financial results for the first quarter of 2024, reporting revenue of $12.72 billion and an adjusted earnings per share (EPS) of $0.18. These figures exceeded Wall Street's expectations. The company's gross margin improved to 45.1%, up from 38.4% in the same period last year, surpassing analysts' forecasts of 44.3%.

However, Intel's outlook for the second quarter fell below Wall Street estimates, with projected revenue expected to range from $12.5 billion to $13.5 billion. Analysts had estimated revenue of $13.63 billion.

Intel CEO Pat Gelsinger stated, "We achieved steady progress in our priorities and delivered solid quarterly results. The robust innovation in our client, edge, and data center product portfolio drove double-digit revenue growth for Intel products."

In the first quarter, Intel's branded product revenue totaled $11.9 billion, representing a 17% increase year over year. The resurgence of the personal computer (PC) market contributed to the strong performance of Intel's Client Computing Group, with revenue in this segment reaching $7.5 billion, an increase of 31%.

Contract manufacturing revenue amounted to $4.4 billion, a 10% decline year over year, while other revenue stood at $775 million, marking a 46% decrease year over year.

Gelsinger highlighted that Intel's Gaudi AI chips are projected to generate over $500 million in revenue this year. The company introduced its third-generation Gaudi 3 processors in April, although their performance falls short of Nvidia's latest products.

Gelsinger anticipates improvements across all of Intel's business units in the second half of this year and remains optimistic about PC sales.