Nov 01, 2024 16:00:00

Intel's third quarter 2024 sales fell 6% year-on-year to a loss of 2.5 trillion yen, but the results were better than expected, so its stock price soared by about 7%

On October 31, 2024, Intel announced its financial results for the third quarter (June to September) of 2024. Sales fell 6% year-on-year to $13.3 billion (approximately 2.3 trillion yen), and net income fell from $300 million (approximately 50 billion yen) in the same period last year to minus $16.6 billion (approximately 2.53 trillion yen). However, sales exceeded market expectations, and stock prices rose.

Intel Reports Third-Quarter 2024 Financial Results :: Intel Corporation (INTC)

https://www.intc.com/news-events/press-releases/detail/1716/intel-reports-third-quarter-2024-financial-results

Intel (INTC) Q3 earnings report 2024
https://www.cnbc.com/2024/10/31/intel-intc-q3-earnings-report-2024.html

Intel's third quarter 2024 sales were $13.3 billion, down 6% from $14.2 billion in the third quarter of 2023. In particular, the company achieved a 9% increase in sales in the Data Center & AI division due to strong performance of its workstation CPU 'Xeon' and AI PCs, but the company posted an overall deficit due to cost-cutting plans to spend $10 billion (approximately 1.52 trillion yen) on personnel cuts and organizational restructuring.

As 2024 approaches, Intel is in a difficult position, having to cut about 15,000 jobs, or more than 15% of its total workforce, and halting plans to develop a semiconductor manufacturing base in Germany, among other things.

Intel to cancel $4 trillion chip factory project in Germany and sell business to restructure operations and renew capital investments - GIGAZINE

In announcing the financial results, Intel CEO Pat Gelsinger said, 'Intel is undergoing its most significant reorganization since its founding in 1968,' and revealed plans to complete the restructuring by the fourth quarter of 2025 and to make the foundry business an independent subsidiary.

On the other hand, shares rose slightly after the company announced that its reported sales were slightly above analysts' expectations, that its partnership with Amazon Web Services had expanded to include a deal to provide new AI chips, and that it had received funding from the CHIPS Act to strengthen the semiconductor supply chain in the U.S. However, Intel's stock price has been declining for the entire year, and in any case, it is certain that the company is in a very difficult position.