MENU

Foundry unit haunts tepid Intel fourth quarter results

Foundry unit haunts tepid Intel fourth quarter results

Business news |
By Peter Clarke



Former chipmarket leader Intel exceeded some analysts’ expectations with the publication of its 4Q24 financial results. There are indications that the company may be approaching the bottom after a spectacular fall in its prospects during 2024.

However, the Intel Foundry subsidiary operation, which remains a central plank of the company strategy, continues to lose ground. Much will depend on whether it can bring up successful products on its 18A manufacturing process in 2H25, as forecast.

Intel made a net loss of US$0.1 billion on revenue of US$14.3 billion in 4Q24. The revenue was at the top of the previous guidance and up sequentially from US$13.3 billion in the prior quarter. The revenue was down 7 percent year-on-year although gross margin was impacted by 6.5 percentage points to 39.2 percent.

The prospects for 2025 look cloudy on both a company-specific and industry-wide basis. And Intel is still conducting an executive search for a full-time CEO to replace the co-interim CEOs who stepped up when Pat Gelsinger was ousted from the job in December 2024.

The company forecast a 1Q25 revenue of between US$11.7 billion and US$12.7 billion, which at the mid-point would be down 3.9 percent on the same quarter a year before.

For the full year 2024 Intel made a loss of US$18.8 billion on sales of US$53.1 billion down just 2 percent from 2023. The loss includes the dramatic US$16.6 billion loss declared in 3Q24 composed primarily of restructuring charges.

Intel declares huge loss but hopes for better in 2026

Although most of Intel’s business units suffered in 4Q24 results, for the full year Intel’s three chip product divisions were all up compared with 2023; the client computing group by 4 percent and Datacenter/AI and Networking/Edge by 1 percent each. This aggregate 3 percent rise did not compensate for the fall in the Intel Foundry business.

In 4Q24 Intel Foundry took in US$4.5 billion in revenue, marginally up from the previous quarter but down 13 percent compared with a year before. For the whole year Intel Foundry revenue was US$17.5 billion, down 7 percent compared with 2023.

In a statement Michelle Johnston Holthaus, interim co-CEO of Intel and CEO of Intel Products, said: “The fourth quarter was a positive step forward as we delivered revenue, gross margin and EPS above our guidance.”

David Zinsner, CFO and interim co-CEO, said: “The cost reduction plan we announced last year to improve the trajectory of the company is having an impact.” He added: “Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics.”

Intel maintained its share price at just over US$20 on publishing its results before succumbing to a broader run on the stock market and settling at about US$19

Related links and articles:

www.intel.com

News articles:

Intel declares huge loss but hopes for better in 2026

Intel prepares to jettison venture capital arm

Intel is sampling Panther Lake processor on 18A process

 

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News

Share:

Linked Articles
10s