In a disappointing quarterly financial report, Intel announced a staggering loss of $16.6 billion despite generating $13.3 billion in revenue, highlighting significant challenges within the company. This outcome, while not unexpected following its recent restructuring announcement, paints a grim picture for one of the tech industry’s giants. A major contributor to these losses includes $2.8 billion in restructuring charges and a staggering $15.9 billion in depreciation costs tied to its Intel 7 manufacturing process. When adjusted for non-GAAP metrics, Intel’s losses appear slightly less severe at $2 billion for the third quarter of 2024.
Despite these financial woes, Intel’s Client Computing Group, a division that resonates with technology enthusiasts, reported revenues of $7.3 billion, marking a 7% decline. Nevertheless, the company continues to assert its dominance in the emerging AI PC market, projecting that it will ship over 100 million AI-enabled PCs by the end of 2025. CEO Pat Gelsinger expressed optimism about Intel’s trajectory, claiming the company is making “solid progress” on its strategic initiatives and emphasizing the potential of the new 18A manufacturing process. This shift is designed to attract clients to Intel’s foundry services, which have reportedly garnered “strong interest” from various partners.
The after-hours trading session saw Intel’s stock rise significantly, buoyed by an optimistic fourth-quarter revenue forecast. The company projects revenues between $13.3 billion and $14.3 billion, suggesting a rebound that surpasses third-quarter figures and exceeds Wall Street expectations. This positive outlook may signal a gradual recovery for Intel and the broader PC market, indicating that the company could be on the verge of stabilizing after a period of turbulence.
