Intel’s Q1 2024 Financial Report Reveals Promising Performance

Mobile World Congress

Intel Corporation, the semiconductor manufacturer, has released its first-quarter financial results for 2024. The company reported a solid quarter with double-digit revenue growth in its client, edge, and data center portfolios. Intel’s CEO, Pat Gelsinger, expressed confidence in their plans to drive sequential growth throughout the year, emphasizing their focus on AI solutions and operational discipline in a dynamic market.

David Zinsner, Intel’s CFO, highlighted that the first-quarter revenue was in line with expectations and exceeded guidance for non-GAAP EPS. This was driven by better-than-expected gross margins and strong expense discipline. Zinsner also mentioned the positive impact of Intel’s new Foundry operating model, which provides greater transparency and accountability across the business.

Intel’s internal foundry operating model, implemented in the first quarter of 2024, has created a foundry relationship between its Intel Products business and Intel Foundry business. This model aims to reshape operational dynamics and drive cost efficiency. Additionally, Intel is operating Altera, an Intel Company, as a standalone business starting this year.

In terms of product highlights, Intel continues to make strides in bringing AI capabilities to various devices. They have shipped over 5 million AI PCs since the launch of Intel Core Ultra processors in December 2023. The company expects to surpass its earlier forecast of 40 million AI PCs by the end of 2024.

Intel’s Vision division introduced the Intel Gaudi 3 AI accelerator, which is projected to deliver faster inference and greater power efficiency compared to nVidia H1001 on leading generative AI models. They also announced new customers and partners for the Intel Gaudi accelerator, including NAVER, Dell Technologies, Bosch, and Supermicro. Furthermore, Intel released the next-generation E-core Intel Xeon, code-named Sierra Forest, with Granite Rapids expected to be released in the third quarter.

At Mobile World Congress in Barcelona, Intel launched the Intel Edge Platform, a modular software platform enabling enterprises to develop and manage edge and AI applications at scale. The platform has garnered support from major players like Amazon Web Services, Lenovo, Red Hat, SAP, and Wipro. Intel also announced the Open Platform for Enterprise AI, aiming to drive interoperability for secure and cost-effective GenAI deployments.

Intel Foundry, the world’s first systems foundry for the AI era, made significant progress during the quarter. They secured a major U.S. aerospace and defense customer for their Intel 18A process. Microsoft also announced plans to design a chip on Intel 18A. Intel launched its process technology roadmap, introducing Intel 14A as part of its leading-edge node lineup and announcing specialized node evolutions for Intel 3, Intel 18A, and Intel 14A to cater to specific customer needs. The company has a strong pipeline of nearly 50 customer test chips and is actively engaged with various foundry customers in the industry.

In terms of sustainability efforts, Intel hosted its inaugural Sustainability Summit, bringing together over 140 organizations. They shared notable progress in achieving sustainability goals, including using 99% renewable electricity in their factories worldwide and achieving net positive water in certain locations.

Lastly, Intel announced a quarterly dividend of $0.125 per share on its common stock, payable on June 1, 2024, to shareholders of record as of May 7, 2024.

Overall, Intel’s first-quarter results showcase their steady progress and commitment to innovation across multiple sectors. With a focus on AI solutions, operational discipline, and sustainability, the company aims to drive growth and maintain its position as a leader in the semiconductor industry.

(Source)

Background Information

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About Dell: Dell is a globally technology leader providing comprehensive solutions in the field of hardware, software, and services. for its customizable computers and enterprise solutions, Dell offers a diverse range of laptops, desktops, servers, and networking equipment. With a commitment to innovation and customer satisfaction, Dell caters to a wide range of consumer and business needs, making it a important player in the tech industry.

  

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About Intel: Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

  

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About Lenovo: Lenovo, formerly known as "Legend Holdings," is a important global technology company that offers an extensive portfolio of computers, smartphones, servers, and electronic devices. Notably, Lenovo acquired IBM's personal computer division, including the ThinkPad line of laptops, in 2005. With a strong presence in laptops and PCs, Lenovo's products cater to a wide range of consumer and business needs. Committed to innovation and quality, Lenovo delivers reliable and high-performance solutions, making it a significant player in the tech industry.

  

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About Microsoft: Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

  

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About nVidia: NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

  

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About Supermicro: Supermicro is a reputable American technology company founded in 1993 and headquartered in San Jose, California. Specializing in high-performance server and storage solutions, Supermicro has become a trusted name in the data center industry. The company offers a wide range of innovative and customizable server hardware, including motherboards, servers, storage systems, and networking equipment, catering to the needs of enterprise clients, cloud service providers, and businesses seeking reliable infrastructure solutions.

  

Event Info

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About Mobile World Congress: Mobile World Congress (MWC) is a globally recognized and influential annual event held primarily in Barcelona, Spain, but with some editions in other locations. As one of the largest gatherings in the mobile and telecommunications industry, MWC attracts a diverse array of participants, including mobile device manufacturers, telecommunications companies, software developers, and tech enthusiasts. It serves as a critical platform for unveiling the latest mobile technologies, smartphones, network infrastructure, and innovations, often featuring major product launches and announcements.

  

Technology Explained

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Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

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Xeon: The Intel Xeon processor is a powerful and reliable processor used in many computer systems. It is a multi-core processor that is designed to handle multiple tasks simultaneously. It is used in servers, workstations, and high-end desktop computers. It is also used in many embedded systems, such as routers and switches. The Xeon processor is known for its high performance and scalability, making it a popular choice for many computer applications. It is also used in many cloud computing applications, as it is capable of handling large amounts of data and providing high levels of performance. The Xeon processor is also used in many scientific and engineering applications, as it is capable of handling complex calculations and simulations.