Intel released its Q1 2024 financial report with a revenue of $12.72 billion and an adjusted earnings per share (EPS) of $0.18, exceeding Wall Street's expectations. In addition, the gross profit margin increased to 45.1% compared to the same period last year's 38.4%, exceeding analysts' general expectation of 44.3%.
However, Intel's second quarter outlook did not meet Wall Street's expectations, with expected revenue ranging from $12.5 billion to $13.5 billion, lower than analysts' forecast of $13.63 billion.
Intel CEO Pat Kissinger said, "We have made steady progress in our priorities and achieved robust quarterly performance. The strong innovation in our client, edge, and data center product portfolio has driven double-digit revenue growth for Intel products."
In the first quarter, Intel's revenue from its own branded products was 11.9 billion US dollars, a year-on-year increase of 17%; Thanks to the recovery of the personal computer (PC) market, Intel's client computing division has performed strongly, with revenue in this segment reaching $7.5 billion, a growth of 31%.
The total revenue from contract manufacturing was 4.4 billion US dollars, a year-on-year decrease of 10%; All other income was $775 million, a year-on-year decrease of 46%.
Kissinger stated that Intel Gaudi AI chips are expected to generate revenue exceeding $500 million this year. The company launched its third-generation Gaudi 3 processor in April, but its performance is inferior to Nvidia's latest product.
Kissinger expects that every business of Intel is expected to perform better in the second half of this year and is optimistic about PC sales.
