Join top executives in San Francisco on July 11-12, to hear how leaders are integrating and optimizing AI investments for success. Learn More
Intel reported that its fourth-quarter revenues and profits were above expectations, but the stock slipped slightly in after-hours trading.
On a non-GAAP basis, Santa Clara, California-based Intel reported net income of $6.1 billion (down 27% from a year earlier but above Intel’s own guidance), or $1.09 a share, on revenues of $19.5 billion, up 4% for the fourth quarter ended December 31. Datacenter revenues were up, while client computing sales dropped from a year ago.
Analysts expected Intel to report earnings of 90 cents a share on revenues of $18.32 billion for the December quarter. Intel’s stock is 0.3% at $51.54 a share in after-hours trading. Perhaps the weak forecast spooked investors.
“Q4 represented a great finish to a great year. We exceeded top-line quarterly guidance by over $1 billion and delivered the best quarterly and full-year revenue in the company’s history,” said Pat Gelsinger, Intel CEO, in a statement. “Our disciplined focus on execution across technology development, manufacturing, and our traditional and emerging businesses is reflected in our results. We remain committed to driving long-term, sustainable growth as we relentlessly execute our IDM 2.0 strategy.”
Join us in San Francisco on July 11-12, where top executives will share how they have integrated and optimized AI investments for success and avoided common pitfalls.
Gelsinger is still excited because he returned to Intel last year as CEO and gets his shot at turning Intel around after several hard years of manufacturing delays. Intel also faces heavy competition from Advanced Micro Devices (AMD), which has designed more innovative chips than Intel and gained market share for three years in a row.
Economists have been concerned about the worldwide semiconductor shortage, which has been prompted by underinvestment in the early part of the pandemic and a huge surge in demand for tech products in different markets Just about all chip companies are expanding now to meet that demand, and Intel recently said it would spend $20 billion on new manufacturing in Arizona.
Intel closed the quarter with 121,100 employees, up from 110,600 a year ago.
The Client Computing Group reported Q4 revenues of $10.1 billion, down from $10.9 billion a year earlier.
The Datacenter Group reported record revenues of $7.3 billion, up from $6.0 billion a year earlier. Internet of things was $1.06 billion, up from $777 million a year earlier. Mobileye was a $99 million, down from $110 million a year earlier. The NSG group was $354 million, up from $76 million, while PSG was $51 million, down $43 million.
The fourth-quarter revenue was led by a record quarter for the Datacenter Group (DCG), with strong server recovery in enterprise and government markets.
The Internet of Things Group (IoTG) had a record quarter, reflecting strong demand on recovery from COVID-19 impacts. The Client Computing Group (CCG) delivered a $10 billion quarter, proving that PCs are more essential than ever, Intel said.
For the first quarter ending March 31, Intel said it is targeting 80 cents a share on revenue of $18.3 billion.
Intel recently launched its first graphics chips and it has launched its 12th Gen Core mobile processors for PCs that are launching in the market now.
During the quarter, Intel launched the 12th Gen Intel Core processor family, including the all-new 12th Gen Intel Core H-series mobile processors led by the Intel Core i9-12900HK, Intel’s fastest mobile processor ever. The 12th Gen Intel Core family will include 60 processors and more than 500 designs.
Intel said last week it would build a chip factory site in Ohio with as many as eight fabs, or individual factories, for $20 billion (for the first two fabs). Production will start by 2025. The factory is linked to a plans to a $52 billion in subsidy funding for semiconductor companies from Congress. That bill is pending. If it passes, Intel might spend as much as $100 billion.
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Discover our Briefings.