Intel announced financial results for the third quarter of 2024. It reported revenue of $13.3 billion, down six percent from the same quarter last year.
Intel saw its revenue decline in the third quarter of this year, but did better than Wall Street analysts had predicted. Intel saw mixed results within key segments:
- The Client Computing Group (CCG) generated $7.3 billion in revenue; down 7% year over year.
- The Data Center and AI Group (DCAI) reported revenue growth of 9 percent to $3.3 billion, reflecting demand for AI applications and data centers.
- The Network and Edge group (NEX) grew 4 percent to $1.5 billion
Intel previously announced its intention to establish Intel Foundry as an independent subsidiary to improve the separation between internal and external customers. This will give the Foundry division more flexibility for future funding and growth, the company said. In addition, Intel reported significant progress in the development of its Intel 18A technology, which has generated positive interest from customers.
Once again in-house manufacturing
Intel will also use 18A internally for key products, such as future Panther Lake chips for client applications and Clearwater Forest chips for servers. Currently, Intel uses third-party manufacturing capabilities, specifically TSMC. The company wants to scale back that dependence. 70 percent of the area of the new chips must be built within intel’s own factories.
In addition, Intel is working with Amazon Web Services (AWS) on a new custom Xeon 6 chip on Intel 3 technology and an AI chip for AWS on Intel 18A technology. These collaborations point to a combined approach in which Intel is producing advanced chips both independently and with partners to meet the growing demand for specialized and scalable solutions.
Positive outlook
For the fourth quarter, Intel has optimistic expectations. The company forecasts revenue growth of $13.3 billion to $14.3 billion. Intel CEO Pat Gelsinger expressed confidence in the progress of the restructuring program, which has already cost some 15,000 jobs, and stressed the focus on cost control and future growth, despite financial pressures in the third quarter. CFO David Zinsner called the restructuring measures taken an “important step toward improved profitability and liquidity.”