<div id="readability-page-1"><img width="2560" height="1440" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2024/08/120104158_l_normal_none-scaled.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2024/08/120104158_l_normal_none-scaled.jpg"/>Intel Corp. shares fell as much as 5% in after-hours trading on Thursday after the chipmaker issued a first-quarter outlook that missed Wall Street expectations, tempering optimism around its long-awaited turnaround.The company forecast first-quarter revenue of about $12.2 billion at the midpoint of its guidance, below the $12.6 billion average estimate compiled by Bloomberg. Intel also said it expects to break even on an earnings-per-share basis, compared with analysts’ projections of $0.08.The cautious outlook contrasted with a better-than-feared fourth quarter, in which Intel delivered earnings and revenue above expectations. The results underscore the tension facing the US chipmaker as it seeks to balance near-term cost pressures with longer-term bets on artificial intelligence and advanced manufacturing.<h2>AI demand lifts results, but costs loom large</h2>Intel reported fourth-quarter earnings of $0.15 a share, edging past both last year’s $0.13 and the $0.09 expected by analysts. Revenue fell 4% from a year earlier to $13.7 billion but exceeded forecasts of $13.4 billion.Chief Executive Officer Lip-Bu Tan pointed to rising demand for central processing units, or CPUs, used in AI workloads, particularly in data centres. “Our conviction in the essential role of CPUs in the AI era continues to grow,” Tan said in a statement, adding that the company aims to sharpen execution and reinvigorate engineering excellence as it pursues AI opportunities across its businesses.Intel’s adjusted gross margin came in at 37.9%, down from 42.1% a year ago but ahead of estimates. Still, margins remain under pressure as the company ramps spending on its next-generation 18A manufacturing process and future nodes, investments seen as critical to restoring its competitiveness as a contract chipmaker.<h2>Turnaround hopes face near-term headwinds</h2>Intel remains the only large-scale US producer of leading-edge chips and has backing from the federal government, positioning it as a strategic counterweight to Asian manufacturing rivals. Yet its product business continues to face intense competition from Advanced Micro Devices and Arm-based chip designs, while Nvidia dominates AI accelerators.Wall Street sentiment toward Intel has improved in recent weeks, driven by stronger demand for traditional CPUs in data centers and enthusiasm around its upcoming Panther Lake chips designed for AI-powered PCs. Firms including HSBC and KeyBanc raised their ratings, helping push Intel shares up nearly 12% this month and to their highest level in four years earlier this week.That momentum now faces fresh scrutiny. Intel warned that rising costs for memory and storage components used alongside its processors could dampen demand for servers and PCs built around Intel chips, weighing on profitability.Chief Financial Officer David Zinsner said the company exceeded fourth-quarter expectations even as it “navigated industry-wide supply shortages,” highlighting execution improvements but also the fragile backdrop for growth as Intel pushes deeper into the AI era.The post Intel stock falls 5% as forecast disappoints, chipmaker warns of margin pressure appeared first on Invezz</div>

On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

In the AI era, can Intel win a comeback?

Intel Corp. shares dropped 5% in after-hours trading following a disappointing first-quarter outlook, forecasting revenue of $12.2 billion, below Wall Street's $12.6 billion estimate. Despite a better-than-expected fourth quarter, Intel faces margin pressure due to rising costs and competition from AMD and Nvidia. CEO Lip-Bu Tan emphasized the growing demand for CPUs in AI workloads, while CFO David Zinsner noted challenges in profitability due to increased costs for memory and storage components. The company's adjusted gross margin fell to 37.9%, raising concerns about its turnaround efforts.

- Intel Corp. shares dropped by 5% after the chipmaker’s first-quarter outlook fell short of Wall Street expectations, forecasting revenue of $12.2 billion against a $12.6 billion estimate.  
- Despite exceeding fourth-quarter earnings expectations with $0.15 a share and revenue of $13.7 billion, Intel faces challenges from rising costs and competition, particularly in the AI sector.  
- The company emphasizes the critical role of CPUs for AI workloads while acknowledging pressure on margins due to increased spending on next-generation manufacturing processes.

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Intel stock falls 5% as forecast disappoints, chipmaker warns of margin pressure